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V0058-24 15 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Donating a property generates a capital gain or loss for Income Tax purposes for the donor

A taxpayer inquired about the Income Tax (IRPF) implications of donating a property to their child. The Directorate General for Taxes (DGT) ruled that the donor must calculate a capital gain or loss, whereas the recipient will not be taxed under Income Tax for such income.

The question raised

Taxation of the donation under Personal Income Tax.

The DGT's ruling

The donation generates a capital gain or loss for the donor due to an alteration in their assets. The transfer value shall be that resulting from the Inheritance and Gift Tax regulations, without exceeding the market value. Should a capital loss occur, it shall not be deductible as it constitutes a lucrative transfer. The resulting gain shall be included in the savings tax base.

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