7,3,7,1,1. Depreciation

Depreciation of the property

In most cases, the program calculates the amount of the deductible expense for depreciation based on the data entered in the following sections:

It must indicate whether the acquisition of the property is for a consideration or for a profit or loss (property acquired through inheritance, donation). If a party acquired it for a consideration and a profit or loss, it must tick the two boxes.
Acquisition date. If there is more than one date, the date corresponding to the first purchase will be indicated.
Indicate the transmission date if this was produced in the year.
The number of days of the lease contract. If more than one lease has to be registered for that property, you will have to indicate the number of days of each type of lease, the rest of the data (acquisition date, cadastral value, etc.) will be transferred by the program.
The cadastral value recorded in the IBI bill in proportion to its percentage ownership.
The cadastral value of the construction in proportion to its percentage of ownership.
The percentage of the construction value with respect to the cadastral value is calculated by the program.
Acquisition amount. In purchases in a consideration, the amount of the acquisition is. In purchases in a lucrative capacity, the value assigned for the purposes of Inheritance and Donations tax shall be taken as acquisition amount, without it being able to exceed the market value (in general it will be that shown in the deed).
The amount of the expenses and taxes corresponding to the acquisition of the property paid by the purchaser.
You must indicate the amount of the improvements made in previous years.
In the case of improvements made in 2019, you will have to enter the amount and the repayment days. Bear in mind that in general the improvement affects the construction, so the part corresponding to the land will not be excluded from the construction. The details relating to the Tax ID of the person who carried out the work or service and the date of the improvement are voluntary.

Amortisation in special cases

In cases where it is not possible to compare the acquisition cost and the cadastral value with the data entered in the different boxes, the taxpayer must calculate the repayment. In these cases, the taxpayer must indicate exclusively the type of acquisition: Onerous, lucrative or both without completing any information in the "Amortisation of the property" section and shall state in the "Repayment in special cases" section the amount of the amortisation that has previously been calculated.

Special repayments include:

When the taxpayer is the holder of the usufruct (he/she also has another party in full ownership).
When the land and construction have been purchased differently.
When only part of the property is rented (room rental...)
When the percentage of ownership varies during the financial year (due to having purchased or transferred part), when the owner of a part of the property is a owner.
When the property has not been assigned a cadastral value (recently built properties or properties abroad).
In the last year of repayment when, with the application of the general rule, it would result in an amount that would cause the accumulated total amortisation to exceed the maximum amount that can be repaid.

In the exceptional case in which the taxpayer chooses to apply a percentage of repayment less than 3%, the amount resulting from applying that percentage to the greater of: The cadastral value or the cost of acquisition paid, not including the value of the land in both cases, will also be recorded in this section on repayments in special cases. However, remember that in a subsequent sale of the property, the acquisition value will be reduced by the amounts resulting from applying 3%, even if you have deducted a lower expense for having applied a percentage below 3% as a depreciation.

Examples of special repayments

A taxpayer acquired the usufruct of a property by inheritance. The value for the purposes of Inheritance and Donations Tax is €55,000 and the amount of this tax paid on the occasion of this acquisition is €5,000. The property was rented all year round and the rental amount is €800 per month.

Sign purchase
- If the usufruct was temporary and lasts years de10
  
  "Amortisation in special cases" = Cost of acquisition/duration of usufruct = 60,000/10 = 6,000
- If the usufruct is life annuity
  
  "Amortisation in special cases" = 3% * 60,000 = 1,800
Whether the usufruct is temporary or life annuity, the amount of the amortisation may not exceed the total yield of the right, in this case: 800 * 12 = 9,600
A taxpayer bought 50% of a property for €150,000 and acquired, by donation, the usufruct of 50% with a value for the purposes of Inheritance and Donations Tax of €100,000. The amount of this tax paid on the occasion of this acquisition is €5,000 and the expenses inherent to the acquisition €1,000. The cadastral value of the property is €90,000, with the value of the construction being €72,000. The property was rented all year round and the rental amount was €1,000 a month.

It will mark a costly and lucrative acquisition. As the holder of two different rights will depreciate:
- The right of usufruct: 3% * (100,00 + 5,000 + 1,000) = 3,180
- Full ownership: The cost of building acquisition (150,000 * 80%) is greater than the cadastral value of the construction (72,000 * 50%). The repayment would be: 3% (150,000 * 80%) = 3,600
The amount of the "Repayment in special cases" will be = 3,180 + 3,600 = 6,780
On 01/01/2016, a taxpayer acquired a land for €30,000 with a cost of €1,000. on 01/12/2018, the construction of the property ends and on 01/01/2019, it is used for rental. The cost of construction is €150,000, expenses and taxes amount to €10,000. The cadastral value of the construction is €100,000.

Mark purchase on a premium basis

The calculation of the depreciation will be based on the greater of: Cadastral value of the construction (100,000) or the cost of the construction (150,000 + 10,000)

"Amortisation in special cases" = 3% (160,000) = 4,800
A taxpayer owns 100% of a property acquired for a consideration for €200,000. On 1/12/2019, you rent a room that represents 30% of the area of the property. The cadastral value of the property is €100,000, with the value of the construction being €80,000.

Mark purchase on a premium basis

Cost of construction acquisition (200,000 * 80%) = 160,000, which is greater than the cadastral value of the construction.

The room represents 30% of the property, so the cost of purchasing the room would be: (160,000 * 30%) = 48,000

The depreciation corresponding to the room: (3% * 48,000) = 1,140.

The amount of "Repayment in special cases" would be 1/12 * 1,440 = 120 (as the room was leased only one month)
A taxpayer bought 1% of a property on 1/2016/60 for €80,000. On 01/10/2019, buy the other 40% for €40,000. The cadastral value is €100,000 and the value of the construction is €80,000.

Mark purchase on a premium basis. The calculation of the depreciation will take the greater of:
- The cadastral value of the construction 80,000
- Construction acquisition cost (80,000 + 40,000) * 80% = 96,000
The depreciable value will be: 96,000

The amount of the "Repayment in special cases" will be = 3% * [(80,000 * 80%) + (40,000 * 80%) * 3/12] = 2,400
A taxpayer acquires a property for 200,000 euros to allocate it to the rent. As it is recently built, the property has no cadastral value. The value of the land is estimated at 10%.

Mark purchase on a premium basis

The value of the construction: (200,000 * 90%) = 180,000

The amount of the "Repayment in special cases" will be = (3% * 180,000) = 5,400

Example of depreciation of a property acquired for consideration and profit (except for the case of depreciation in special cases)

A taxpayer inherits 01% of a property on 01/2015/50, the other 50% corresponding to his brother. The value for the purposes of Inheritance and Donations Tax is €60,000, the expenses and taxes paid in the acquisition are €3,000. On 01/08/2018, he bought his brother his 50% for €80,000, paying €2,000 for expenses and taxes. The cadastral value of the property is €100,000, with the value of the construction being €80,000. The property was leased all year round.
- Will mark a onerous and lucrative acquisition
- Acquisition date 01/01/2015
- Number of days of contract 365
- Cadastral value (part corresponding to the percentage of ownership in the property) 100,000
- Cadastral value of the construction (part corresponding to the percentage of ownership in the property) 80,000
- Acquisition amount 140,000 (60,000 + 80,000)
- Expenses and taxes inherent to the acquisition 5,000 (3,000 + 2,000)
The amount of the redemption calculated by "Renta Web" will be = 3% * (116,000) = 3,480
A taxpayer inherits 01% of a property on 01/2015/50, the other 50% corresponding to his brother. The value for the purposes of Inheritance and Donations Tax is €50,000, the expenses and taxes paid in the acquisition are €3,000. On 01/08/2018, he bought his brother his 50% for €80,000, paying €2,000 for expenses and taxes. The cadastral value of the property is €150,000, with the value of the construction being €120,000. The property was leased all year round.
- Will mark a onerous and lucrative acquisition
- Acquisition date 01/01/2015
- Number of days of contract 365
- Cadastral value (part corresponding to the percentage of ownership in the property) 150,000
- Cadastral value of the construction (part corresponding to the percentage of ownership in the property) 120,000
- Acquisition amount 130,000 (50,000 + 80,000)
- Expenses and taxes inherent to the acquisition 5,000 (3,000 + 2,000)
The amount of the redemption calculated by "Renta Web" will be = 3% * 120,000 = 3,600

Example of the amortisation of a property for which an improvement has been made

In January I purchased a flat for €120,000, the expenses and taxes paid were €10,000. Before making it for rent, he made a €30,000 renovation. The reform ends in September and in December, the property was rented. The land registry value is €100,000 and the building value is €80,000.

Purchase date: 01/01/2019
Number of days of the lease contract: 31
Cadastral value: 100,000
Cadastral value of the construction: 80,000
% Of the cadastral value of the construction (calculated by the program): 80%
Acquisition amount: 120,000
Expenses and taxes inherent to the acquisition: 10,000
Improvements made in 2019:
Tax ID number of the person who carried out the work (voluntary completion) Date (voluntary completion) Amount: 30,000 (The floor part is not excluded). Amortisation days: 31