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A query was raised regarding whether the division of five rural estates among co-owners constitutes a capital alteration. The DGT ruled that no alteration occurs provided the allocation of lots aligns with each co-owner's respective ownership share.
This ruling provides legal certainty for co-owners during the dissolution of a community of property, confirming that an equitable distribution based on existing shares does not trigger tax liabilities for capital gains or losses.
The tax team reviews your specific situation.
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