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A co-owner inquires about the taxation of dissolving a community of property by allocating a property to her with monetary compensation. The DGT states that if the allocation respects ownership shares, there is no onerous transfer; however, if there is an excess allocation, it may be taxable if certain conditions are met.
An excess allocation in property distribution during community dissolution may trigger taxable events if specific conditions are met.
The tax team reviews your specific situation.
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