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A taxpayer inquired about the taxation of donating properties to their daughters for use as their primary residence. The DGT ruled that such a donation results in a change in net wealth that must be quantified according to the rules governing gratuitous transfers.
Donors must account for any capital gains or losses arising from the donation in their personal income tax returns, as the transaction is treated as a gratuitous transfer.
The tax team reviews your specific situation.
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