Skip to content
V1303-20 ·7 May 2020 ·consulta-vinculante Medium impact
Tax

Inheritance acquisition value is the amount declared for Inheritance Tax and mortgages do not reduce capital gains

A query was raised regarding which acquisition value should be used when selling an inherited property with an outstanding mortgage, and whether the cancellation of said mortgage affects the calculation. The DGT ruled that the value declared in the Inheritance and Gift Tax must be used and that the mortgage is not a deductible expense.

In 6 key points

How it affects those involved

This ruling clarifies that taxpayers cannot deduct mortgage debt from the acquisition value when calculating capital gains on inherited property, potentially leading to higher tax liabilities than expected if the mortgage is not accounted for correctly.

Lifecycle

2020-05-07PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact