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A taxpayer requested clarification regarding the taxation of compensation for housing defects, legal costs, and interest. The DGT ruled that compensation does not generate a capital gain if it is equivalent to the repair cost, whereas legal costs and interest are considered capital gains.
This ruling clarifies the tax treatment of compensation received for property defects, distinguishing between reimbursement for repairs (non-taxable) and additional payments such as legal costs and interest (taxable as capital gains).
The tax team reviews your specific situation.
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