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A taxpayer has inquired whether expenses arising from the loss of Official Protected Housing status can be included in the acquisition or transfer value of a property. The Directorate General for Taxes (DGT) has ruled that such costs do not form part of these values for the purpose of calculating capital gains or losses.
This ruling clarifies that costs associated with the de-classification of protected housing cannot be used to increase the acquisition value or decrease the transfer value, potentially limiting the ability to reduce taxable capital gains in such transactions.
The tax team reviews your specific situation.
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