Deductible rental housing expenses for the owner 2021
At the time of presenting the declaration of the Renta, the tenant can deduct the rent and the owner the expenses related to the house that he has rented, like the insurance of the house, taxes, possible reforms that he has carried out in the property, etc.
In this post we are going to see the expenses of rent that can be introduced in the declaration of the Income tax return to obtain the fiscal benefits that the Treasury grants us. We will focus on this occasion on the expenses that the tenant can deduct.
The tax benefits that can be accessed are managed by the state and the autonomous communities, therefore they can vary depending on the community in which the rented property is located.
The tenant is entitled to two types of deductions, on the one hand the autonomous, which is still in force, and on the other hand the state, which ceased to apply in contracts signed from January 1, 2015. Therefore, only those who have in force contracts signed before that date can benefit from the tax advantages that are 10.05% of the annual income, although your income must be less than 24,107.20€.
A first issue to consider is that the LAU establishes the obligation to deposit the security deposit with the corresponding regional body. In addition, in order for the tenant to be able to access the regional deduction for renting a habitual residence, most of the Autonomous Communities require this deposit.
Even if the tenant does not pay the rent you have to declare the income that is agreed annually. But as it can be unfair, the law allows deducting as “doubtful balance” the part that has not been collected as long as one of these two requirements is met:
Without including the value of the land since the Treasury understands that the land does not deteriorate. To determine the value of the land it will be sufficient to go to the IBI where the value of the land and of the construction of the property is specified.
The lease of housing is regulated in Title II of the LAU. It is based on a habitable building whose purpose is to satisfy the tenant’s permanent need for housing. This means that it will be a housing lease, the one that independently of its duration makes possible to the lessor to inhabit indeterminately this housing as its main and permanent home.
With effect from January 1, 2015, the deduction for the rental of the principal residence provided for in article 68.7 of the Personal Income Tax Law is abolished, however, a transitory regime is established that allows taxpayers who had formalized the rental contract before January 1, 2015 and had been enjoying this tax benefit to continue practicing the deduction.
– Who would have been entitled to the deduction for the rental of the habitual residence in relation to the amounts paid for the rental of such residence in a tax period accrued prior to January 1, 2015.
Extended rental contracts: There will be a right to the deduction for the rental of the main residence during the tax periods in which, as a consequence of its extension, the validity of the rental contract entered into prior to January 1, 2015 is maintained.
Amount of the deduction: The amount of the deduction of the transitional regime consists of 10.05 % of the amounts paid in the tax period for the rental of their habitual residence, provided that their taxable income is less than €24,107.20 per year. Taxpayers whose taxable income is equal to or higher than 24,107.20 euros per year, in individual taxation or in joint taxation, will not be able to apply this deduction.