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A taxpayer inquired whether depreciation applied to a property should be deducted when calculating capital gains upon its sale. The Directorate General for Taxes (DGT) ruled that the acquisition value must be reduced by the amount of tax-deductible depreciation.
This ruling clarifies the calculation of capital gains for real estate transactions, ensuring that the cost basis is correctly adjusted for previous tax deductions.
The tax team reviews your specific situation.
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