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A taxpayer inquired whether the value of a property received via a legacy could be reduced due to a modal burden requiring the proceeds of a future sale to be distributed. The Directorate General for Tax (DGT) ruled that the property must be declared at its real value without applying said burden.
This ruling clarifies that modal burdens do not reduce the taxable base for Inheritance Tax, as the property's value must reflect its actual market worth regardless of subsequent distribution obligations.
The tax team reviews your specific situation.
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