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A query was raised regarding whether an inheritance received by an ascendant living with the taxpayer should be included when calculating the €8,000 annual income limit for the ascendant tax allowance. The DGT ruled that the inheritance itself does not count as it is subject to Inheritance and Gift Tax, although any income generated by said inheritance will be included in the calculation.
This ruling clarifies that capital received via inheritance is excluded from the income threshold for the ascendant allowance, preventing the disqualification of the tax benefit due to non-recurring capital gains, while ensuring that subsequent yields from those assets are correctly taxed.
The tax team reviews your specific situation.
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