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A taxpayer has inquired whether the sale of plots acquired through a fiduciary compensation assembly should be taxed as business income or as a capital gain. The DGT indicates that the classification depends on whether the owner carries out real estate development activities or actively participates in the management of the assembly.
The tax treatment of land sales resulting from compensation assemblies depends on the taxpayer's professional involvement in real estate development or the management of the assembly, affecting whether income is subject to business activity tax rules or capital gains tax.
The tax team reviews your specific situation.
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