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A taxpayer inquired whether the sale price of their property could be reduced by accounting for outstanding mortgage credits and other debts secured against the property. The Directorate-General for Tax (DGT) ruled that the transfer value is the actual disposal amount minus expenses and taxes, with no provision to deduct outstanding debt.
This ruling clarifies that for capital gains tax purposes, the transfer value must reflect the gross sale price (less specific costs) rather than the net proceeds received after settling mortgage liabilities.
The tax team reviews your specific situation.
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