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A taxpayer has requested clarification on how to calculate the acquisition value of a property following a horizontal division and subsequent renovation works. The Directorate General for Taxes (DGT) has ruled that the division does not alter the value or the acquisition date of the original property, and that renovation works only count if they constitute improvements or extensions.
This ruling clarifies the tax implications for property owners undergoing horizontal division, ensuring that the original acquisition cost remains the basis for capital gains tax unless specific improvements are made.
The tax team reviews your specific situation.
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