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A taxpayer inquired whether legal fees and loss of rental income could be added to the acquisition value of a property. The Directorate General for Taxes (DGT) ruled that only legal costs arising from judicial proceedings specifically related to the purchase are deductible as costs inherent to the acquisition.
This ruling clarifies that while certain legal expenses can increase the acquisition value (thereby reducing future capital gains tax), loss of income or general legal fees do not qualify.
The tax team reviews your specific situation.
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