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Two pharmacists, previously part of a community of property, are selling their respective pharmacies and have requested guidance on how to quantify and attribute the resulting profits. The DGT clarifies that income from stock sales constitutes earnings from each owner's individual business activity, whereas goodwill is attributed to the person who holds the ownership of the pharmacy.
This ruling clarifies the tax treatment of profits arising from the sale of business assets within a community of property, distinguishing between operational income and capital gains.
The tax team reviews your specific situation.
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