El Superior Court of Justice of the Basque Country, in Judgment issued on October 14, 2015, it has admitted that a company whose corporate purpose is the lease of real estate, deducts the expenses incurred in the property (IBI, amortization, supplies, etc.), although in said year they have not obtained income derived from said lease, while these are expenses necessary to maintain the good in working or service conditions that make it suitable for producing income.
This conclusion could be extrapolated to income from economic activities derived from the lease of real estate in the Income Tax of Individuals and therefore, the lessor who incurred expenses in an exercise and does not obtain income may deduct all these expenses.
This statement is based on the fact that the tax regulations themselves (Article 28.1 LIRPF), establish that in order to determine the returns of economic activities, it will be necessary to refer to the rules provided for in the Corporation Tax, the conclusions reached by our company being intrinsically applicable. courts in this matter regarding Corporate Taxes in the Personal Income Tax.
However, it should be remembered that this option would not be applicable to real estate returns whose net return can never be negative.
Ana Garcia Gandia
Fiscal Area Collaborator
