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A taxpayer inquired whether the tax on the increase in value of urban land (IIVTNU) and mortgage cancellation costs could be included in their Personal Income Tax (IRPF) filing. The Directorate General for Tax Regulations (DGT) ruled that these costs are deductible from the transfer value when calculating capital gains.
Taxpayers selling property can reduce their taxable capital gains by deducting the IIVTNU and mortgage cancellation expenses from the total transfer value.
The tax team reviews your specific situation.
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