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A taxpayer requested clarification on the tax treatment of donating the bare ownership of a property acquired in 1990. The Directorate General of Taxes (DGT) ruled that such a donation alters the composition of the taxpayer's assets and may result in a capital gain or loss.
This ruling clarifies that the separation of bare ownership and usufruct is treated as a taxable event, requiring the calculation of capital gains or losses based on the difference between the acquisition and transfer values.
The tax team reviews your specific situation.
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