The Supreme Court in a judgment of September 15, 2021, has resolved that to calculate the deductible amortization of leased properties for personal income tax purposes when they were acquired by inheritance or donation, the value of the asset acquired in application of the Inheritance or Donation Tax or its proven value in these levies, must be included in the satisfied acquisition cost.
The acquisition cost satisfied will be applied for both onerous and free acquisitions. This cost is determined according to the rules of the Inheritance or Donation Tax, that is, the one consigned in the deed of donation or acquisition of the inheritance or the one verified by the administration.
The ruling implies a greater similarity between the properties acquired for profit or free with those acquired against payment, which declared a higher yield. Now, both types of properties have the use of the satisfied acquisition cost fixed to determine the depreciation basis.
Therefore, the properties acquired by inheritance or donation, will consider as acquisition cost satisfied: the valuation amount that appears in the deed. The expenses and taxes inherent to the acquisition will no longer be taken into account, in most cases, 3% of the cadastral value.
In accordance with the content of this Judgment, the Tax Administration should modify the criterion that it had been maintaining in recent years, in the sense of considering that in the acquisitions of real estate by inheritance or donation, only the cost corresponding to the expenses and taxes inherent to the acquisition of the property (that is, the cost of the Inheritance Tax) that would have been satisfied by the acquirer, can be considered as a satisfied acquisition cost.