Example: Deduction for investment in new elements of tangible assets or real estate investments used for economic activities

Don PHV is the owner of an economic activity whose net return is determined by the direct estimation method, normal modality.

During 2022, it meets the requirements to be considered a small-sized entity and obtains net income from the activity in the amount of 45,000 euros, with the general liquidable base for the year corresponding to those income of 43,200 euros and the sum of its full state quota. and regional of 10,673 euros.

On September 5, 2022, with the profits obtained during the year, he purchases new machinery for his company for an amount of 25,000 euros, which is delivered to him in November of that year.

Determine the amount of the investment deduction.

Solution:

Net income from economic activities for fiscal year 2022: 45,000

Amount invested in 2022 (1) = 25,000

Basis of deduction (amount invested with the limit of 43,200) (2) = 25,000

Deduction amount: (25,000 x 5%) (3) = 1,250

Maximum limit of the amount (sum of your full state and regional quota) = 10,673

Notes to the example:

(1) The amount of the net income from economic activities obtained in 2022 that is invested in new items affected will be recorded in box [0833] of the annex A.5 of the declaration. (Back)

(2) It is the amount with the right to deduction with the limit of the general positive tax base for 2022 that corresponds to such income and will be entered in box [0834] of annex A.5 of the declaration. (Back)

(3) The amount of the deduction does not exceed the sum of the full state and regional contribution for the 2022 financial year, so, in this case, it will be entered in its entirety in box [0835] of annex A.5 of the declaration. (Back)

Note: In Annex A.5 of the declaration, box [0830] of the amount of net income from economic activities obtained in 2021 that is invested in 2022 in new items and in boxes [0831] and [0832] , respectively, the amount entitled to deduction and the amount of the deduction. Likewise, when it comes to returns obtained in 2022 that are invested in that same year in new items, the amount will be entered in box [0833] and in boxes [0834] and [0835] , respectively, the amount entitled to deduction and the amount of the deduction.