7,3,7,1,2. Examples of completion

Example

The taxpayer is the owner of 100% of a property acquired for consideration on 01/01/2003 for 140,000 euros. The expenses and taxes paid in the acquisition are 10,000 euros.

On 01/01/2015 he rented the property to “A” with NIF : XXX and "B" with NIF: YYY. The lease expires June 30, 2019. The rent is 800 euros per month and the landlord has the right to a 60% reduction. The taxpayer has yet to apply 2018 repair expenses of 1,000 euros.

The IBI receipt, which amounts to 600 euros, contains the following information: cadastral value of the construction 80,000 euros, cadastral value of the land 20,000 euros.

Community expenses amount to 30 euros per month.

On July 1, 2019, it enters into a new contract at “C” with NIF: “ZZZ.” The costs of formalizing the contract are 180 euros. The rent is 900 euros per month. The taxpayer cannot benefit from the 60% reduction.

Completion

The taxpayer will incorporate the property that has been rented and will mark the rental box as it is the only use that the property had in 2019.

By having leases during the year with the right to reduction (Type 1) and without the right to reduction Type (2), you must register 2 leases.

The data collection of the Lease entered into on 1/1/2015 that expires on 06/30/2019 and which will be Lease 1 of 1 is as follows:

In the Lease Data window it will be stated:
- The number of total days in which the property was leased 365 (181 days from January 1 to June 30) + (184 days from July 1 to December 31).
- Lease type: Type 1 would be selected
- Contract date: 01/01/2015
- Tenant's NIF: "XXX" and "YYY"

For this contract concluded in 2015 with tenant "A" and "B" the income generated by that rental and the expenses associated with it will be recorded.

Income: (800*6) = 4,800 euros
Repair and conservation expenses and interest and other financing expenses from 2015 to 2018. Amount pending deduction from 2018: 1,000 euros (remember that this box is unique per property so the program will prorate this amount among all the rentals of that property)
Taxes, surcharges and fees: (50*6)=300 euros of IBI
Community fees: (30*6)= 180 euros
Amortization: In this case, the program calculates it, so it must reflect the following data:
- Acquisition type: onerous
- Purchase date: 01/01/2003
- Number of days of duration of the lease contract in 2019: 181 days (from January 1 to June 30)
- Cadastral value: 100,000 euros
- Cadastral value of the construction: 80.00 euros
- Acquisition amount: 140,000 euros
- Expenses and taxes inherent to construction: 10,000 euros

The data collection of the Lease entered into on 7/1/2019 will be as follows:

You will click “Register Lease” to reflect all the data related to that contract. The program will tell you that it is Lease 2 of 2.

In the Lease Data window it will be stated:
- Total number of days in which the property was leased (the program will transfer the data collected in the other lease) 365 days (181 days from January 1 to June 30 and 184 days from July 1 to December 31).
- Lease type: Type 2 would be selected
- Contract date: For Type 2 leases, completion is not necessary.
- Tenant's NIF: For Type 2 leases, completion is not necessary.

For this contract concluded in 2019 with tenant “C”, the income generated by that rental and the expenses associated with it will be recorded.

Income: (900*6) = 5,400 euros
Repair and conservation expenses and interest and other financing expenses from 2015 to 2018. Amount pending deduction for 2018 is calculated by the program (as there is only one box per property, the program will prorate the amount of the 1,000 euros pending among all the leases of that property)
Taxes, surcharges and fees: (50*6)=300 euros of IBI
Community fees: (30*6)= 180 euros
Contract formalization expenses: 180 euros
Amortization: You will only have to fill in the number of days of duration of the contract, the rest of the data is transferred by the program.
- Acquisition type: onerous
- Purchase date: 01/01/2003
- Number of days of duration of the lease contract in 2019: 184 days (from July 1 to December 31)
- Cadastral value: 100,000 euros
- Cadastral value of the construction: 80.00 euros
- Acquisition amount: 140,000 euros
- Expenses and taxes inherent to construction: 10,000 euros

Example

The taxpayer is the owner of 100% of a house acquired for consideration on 12/01/2019 for 120,000 euros. The expenses and taxes paid in the acquisition are 6,000 euros. During 2019 he rented the house to:

Tenant "A" 15 days

Tenant "B" 7 days

Tenant "C" 4 days

The tenant "D" 5 days

The rental price is 80 euros per day. The amount of the insurance premium is 840 euros per year. The IBI receipt amounts to 900 euros per year. The cadastral value of the construction is 80,000 euros and that of the land is 20,000 euros.

The taxpayer will incorporate the property that has been rented and will mark the rental box as it is the only use that the property had in 2019. In this case, it is not necessary to register a lease for each of the times that the property was rented.

In the Lease Type window it will be stated:

The number of total days in which the property was rented: 31(15+7+4+5)
Lease type: Type 2 would be selected
Contract date: In the case of Type 2 leases, it is not necessary to complete it.
Tenant's NIF: In the case of Type 2 leases, it is not necessary to complete it.

Income: (15+7+4+5)*80= 2,480
Insurance premium: 840* (31/365)= 71.34
Taxes, surcharges and fees: 900 *(31/365)=76.44
Amortization: In this case it is calculated by the program; To do this, it must reflect the following data:
- Acquisition type: onerous
- Purchase date: 12/01/2019
- Number of days of duration of the lease contract in 2019: 31 days
- Cadastral value: 100,000 euros
- Cadastral value of the construction: 80.00 euros
- Acquisition amount: 120,000 euros
- Expenses and taxes inherent to construction 6,000 euros