Owning a property, renting or renting a home are many other conditions that, in certain cases, may be subject to tax advantages for the taxpayers who hold them. From the Registry of Tax Advisors (REAF) of the General Council of Economists (CGE) they review all the elements that it will be better to take into account before the end of the year, if you want to avoid unpleasant surprises in the income statement to be presented in 2021 .
Returns on real estate capital
Do you own a property and rent it? If this constitutes the tenant’s habitual residence, a 60% reduction in net income may be applied. On the contrary, you will not be able to benefit from the reduction if you rent seasonally or to a company without designating the employee who occupies the dwelling. You will not be able to apply it either if the rental includes the provision of services typical of structures comparable to a hotel, such as cleaning or changing sheets.
Do you have to make expenses in your rented property? Well, “advance them in this exercise to reduce the net yield and, in this way, defer the taxation for the lease”, they suggest from the REAF. However, keep in mind that, if you carry out repair and conservation works, together with the financial expenses, these expenses have a limited deduction up to a maximum of the amount of income. The CGE’s tax advisers also stress that, according to the General State Budgets, next year the tax rate for income above 300,000 euros will rise two percentage points. Therefore, “if the set of returns exceeds this limit, it is convenient to defer expenses to 2021”, they advise.
Have you purchased a property for free? To calculate the amortization expense, which is 3% of the higher of the purchase cost paid or the cadastral value of the construction, it is considered that the latter is not the value declared in the Inheritance and Gift Tax, but the amount paid by said tribute, with the accumulated limit of the value.
Has your property been ‘squatted’? If you have a property that was illegally occupied this year, you will not have to allocate real estate income from the beginning of the judicial eviction procedure, without having to wait for its resolution.
Did you buy your home before 2013? Then, you are still entitled to the deduction for the acquisition of your main residence and you can take advantage of it to repay more mortgage before the end of the year, up to 9,040 euros. Remember that, “if the house was acquired by the community property and the spouses file an individual declaration, each one can deduct 9,040 euros in their declaration”, emphasize the tax advisors of the CGE.
Are you entitled to the housing deduction and have you separated or divorced this year? If the home and the entire mortgage loan were awarded, you can apply the deduction for 100% of the amounts paid, provided that the ex-spouse who ceases to be the owner of the home had been entitled to the deduction in previous years, without having taking into account the bases deducted by him. “This tax treatment is novel, since previously the administrative criteria did not allow deducting for the 50% acquired from the spouse after 2012”, they explain from the REAF. “The taxpayer can regularize the fiscal years not prescribed by applying this criterion,” they add.
Do you live for rent? Check if your Autonomous Community regulates any deduction for rent and, if so, verify compliance with the required requirements. In some regions, the deposit of the deposit by the owner is requested before the competent body in housing matters. “It is a procedure that can be completed before the end of the year,” they warn from the REAF.
Do you have the right to the transitory regime of the rental deduction? If so, if this year you have renewed the rental contract, or signed a new one, even with a new owner, but in the same dwelling, keep in mind that you retain your right to the deduction.
Capital gains and losses
Do you plan to sell a property next year for which you have granted a purchase option this year? You must bear in mind that the income obtained is a capital gain to be included in the general base, which is taxed independently of the income that, if applicable, comes from the sale.
Do you own two properties together with a family member? It could be, for example, a property acquired by inheritance and another that they have bought together. If you plan to award each one a property before the end of the year, do not forget that, in the event of the existence of two different communities of property, if the community members exchange property of one for property of the other, the operation will be taxed as an exchange. “The best thing, in this case, is to request the guidance of an expert before carrying out the operation”, recommend the tax advisors of the CGE.