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A taxpayer inquired about the amount required to be reinvested to qualify for the tax exemption following the sale of their main residence after a divorce. The Directorate-General for Taxes (DGT) ruled that to obtain a full exemption, the total proceeds must be reinvested; if a lesser amount is reinvested, only the proportional part of the capital gain will be exempt.
This ruling clarifies the calculation method for tax exemptions related to the reinvestment of proceeds from the sale of a primary residence, ensuring taxpayers understand the necessity of reinvesting the full amount to avoid partial taxation on capital gains.
The tax team reviews your specific situation.
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