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V1091-16 ·17 March 2016 ·consulta-vinculante Medium impact
Tax

Mortgage debt of the deceased may be deducted to determine the tax base

An heir inquired whether a mortgage loan on an inherited property, settled via deed in lieu of foreclosure, could be deducted. The DGT ruled that the debt is deductible for the deceased as it reduces the individual acquisition value.

In 6 key points

How it affects those involved

This ruling clarifies that mortgage liabilities settled by the deceased reduce the acquisition value of inherited assets, thereby affecting the calculation of the tax base for inheritance tax.

Lifecycle

2016-03-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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