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V3521-16 ·26 July 2016 ·consulta-vinculante Medium impact
Tax

Reduction in sale price via court ruling is recorded as a capital loss in the year it is determined

A query was raised regarding when the reduction in the sale price of a property following a court ruling should be taxed. The DGT has ruled that the capital loss must be recognised in the period when the reduction amount is established during the enforcement phase of the judgment.

In 5 key points

How it affects those involved

This ruling clarifies the timing for tax reporting when a judicial decision retroactively reduces the proceeds from a property sale, ensuring the loss is accounted for when the amount becomes certain.

Lifecycle

2016-07-26PublishedPublished 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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