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A property owner has enquired about the tax implications following the demolition of a building due to structural defects. The Directorate General for Taxes (DGT) has ruled that the disappearance of the property constitutes a change in assets resulting in a loss, and that demolition expenses will increase the acquisition value of the land.
This ruling clarifies how the loss of a property through demolition affects the calculation of capital gains or losses for Personal Income Tax (IRPF), specifically regarding the adjustment of land acquisition costs.
The tax team reviews your specific situation.
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