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A taxpayer inquired how the donation of a rural estate to their children, who will not operate it, affects their agricultural activity. The DGT ruled that the capital gains tax exemption cannot be applied if the children are not entitled to the exemption under Wealth Tax.
This ruling clarifies that the tax exemption for the transfer of rural property is strictly tied to the donees' active involvement in the economic activity and their eligibility for related wealth tax benefits.
The tax team reviews your specific situation.
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