Pleta Auditors analyzes the divergent criteria between the AEAT and the TEAC on the personal income tax deduction for canceling the mortgage of the habitual residence in the same act of its sale.
To many people who bought their home before 2013 They are allowed, by a special regime, be deducted from your return of income (IRPF) what they pay for the mortgage of that house. Now, what happens if you decide to sell your house and with that money they finish paying How little they were missing from the mortgage? Can they deduct that amount in personal income tax, even if the money comes directly from the sale of the home itself?
The Tax Agency (AEAT) usually says no, because it considers that, by using the money from the sale to pay off the mortgage, that house is no longer the “usual home” and, therefore, the deduction does not apply. However, the Central Economic-Administrative Court (TEAC) does not agree. According to the TEAC, the fundamental thing is that this money is used for pay off the home mortgage which was usual until the sale. They don’t care if the money comes from your savings or from the amount the buyer pays you, it relevant is the purpose of the payment, not its origin.
TEAC’s position has been supported by several higher court rulings. Even in cases where, when selling the home, it is agreed that part of the price va directly to the bank to close the mortgage, the courts have understood that the requirements are met, considering the sale and payment of the mortgage as a same act.
In conclusion, when you sell your primary home and the money is used to pay off the remainder of the mortgagethat amount can be added to the deduction base in personal income tax, as long as you respect the legal limits and regulations. Yeah Treasury has denied you this deduction and you overpaid, it is possible claim the refund and assess possible damages.
In situations like the one described, our professionals will undertake the appropriate actions to return the unduly paid amount and will analyze the responsibilities for the purposes of compensation for the damages caused.
Article prepared by Pleta Auditores, published in Togas.biz
Source: Pleta Auditores
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