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V3141-20 ·20 October 2020 ·consulta-vinculante Medium impact
Tax

Costs of planting poplars for future sale treated as inventory rather than investment assets

A farmer requested clarification on the tax treatment of planting poplars intended for sale in 14 years. The DGT ruled that this constitutes a forestry activity and that the planting costs must be treated as inventory.

In 5 key points

How it affects those involved

This ruling clarifies that forestry activities aimed at future harvesting are subject to inventory accounting rules rather than investment asset rules, affecting how costs are deducted and reported.

Lifecycle

2020-10-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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