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V3461-20 30 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Household utilities cannot be deducted if the property is not assigned to the economic activity

A self-employed individual inquired whether she could deduct household utility expenses (electricity, internet, etc.) while working from home due to the COVID-19 situation. The Directorate General for Taxes (DGT) ruled that this is not possible because the property is not permanently assigned to the business activity.

The question raised

Deductibility of expenses derived from such utilities

The DGT's ruling

To deduct home utilities based on the 30% proportion of square meters, it is necessary that the dwelling is partially used for the economic activity. The use of the dwelling under an occasional and exceptional circumstance does not constitute an allocation of the same. Therefore, the deduction of said expenses is not applicable.

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