Calculation of income from the rental of a property (home, commercial premises, garage, holiday apartment)
Applicable income, expenses and reductions
Deductible expenses
To determine the net income from real estate, taxpayers can deduct from the total earnings all of the expenses necessary for its acquisition, as well as sums corresponding to the depreciation of the building and other goods transferred along with it, provided that these are in accordance with the real depreciation.
Among others, the following are necessary expenses to obtain returns:
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Interest and other financing expenses of foreign capital invested in the acquisition or improvement of the asset, right or power of use or enjoyment, as well as, where applicable, the assets transferred with it.
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The costs of conservation and repair of the assets producing the income. For these purposes, they have this consideration:
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Those carried out regularly with the purpose of maintaining the normal use of material assets, such as painting, plastering or repairing facilities.
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Those for replacing elements, such as heating installations, elevators, security doors or others.
The amounts intended for the expansion or improvement of the assets are not deductible for this concept, as they constitute a greater acquisition value whose recovery is carried out through the corresponding depreciation.
A maximum limit is established for the deduction of interest on third-party capital, financing expenses and repair and conservation expenses, which may not exceed the amount of the full return on each asset or right. Nevertheless, the excess can be rolled over during the four following years, with the same limit for each building.
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Non-state taxes and surcharges, among others, the IBI, garbage rate, lighting, etc., excluding sanctions.
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Insurance contract premiums
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Legal defense expenses.
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The amounts intended for amortization, provided that they correspond to their effective depreciation.