Depreciation of maintenance fees?

[beowulf]

When deducting costs for taxation of rental, how should maintenance fees for restoration of the urbanization be handled? The maintenance fee in this case is gathered to build up a fund for repainting all the buildings of the urbanization. I guess this should be handled by depreciation of the payments over a number of years. But how many years? Can't find anything about this on the net.

[Beachcomber]

There are no guidelines on what expenses may or may not be deducted from rental income. The matter is totally subjective and the best advice is to make your own calculations and have the figures and receipts to hand so that you can appeal if AEAT decides to challenge your calculations.

They find it easier to make extra money from nit-picking perceived errors in legitimate tax declarations than going after the hundreds of thousands of under the radar tax dodgers who pay nothing whatsoever.

Remember that in order to claim for any expenses at all the declarant must be a fiscal resident of an EU member state otherwise no expenses can be claimed and tax must be paid at a rate of 24%.

[beowulf]

Thanks Beachcomber, that sounds plausible. I'll do that and hope it works. Have a master spreadsheet so it should be easy to show if needed. Can just agree that it is a pity that they who try to do the right things get punished while the obvious wrong doers get away. Such a sub-optimization.

Thanks and a Happy New Year to you and yours!

[beowulf]

Found this link: https://www.agenciatributaria.es/AEAT.i ... eal_.shtml On the bottom there is a line for Other items, max linear depreciation rate is 10%, corresponding to 10 years. For this purpose, repainting of buildings, it also seems like a good value. Will use that.

[Beachcomber]

I think that is in respect of prorating the actual value of an asset over a number of years but at least if gives you a guideline and more ammunition in your armoury if you have to appeal an AEAT challenge of your figures.

I am sure you have already done so but make sure you bookmark that chart in its Spanish version.