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A query was raised regarding whether legal fees and Inheritance and Gift Tax can be added to the acquisition value to calculate capital gains. The DGT ruled that, as the acquisition is made for gratuitous consideration, these costs and other inherent expenses form part of said value.
This ruling clarifies that taxpayers can increase the acquisition value of inherited property by including legal fees and inheritance taxes, thereby reducing the taxable capital gain upon a subsequent sale.
The tax team reviews your specific situation.
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