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V0435-20 25 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Losses from uncollected court-awarded compensation cannot be recognised unless specific requirements are met

A taxpayer inquired whether they could record a capital loss for compensation awarded by a court that they believe will not be collected. The DGT ruled that a court judgment only creates a right of credit, and a loss is only attributable when the credit becomes judicially uncollectible under specific circumstances.

The question raised

Possibility of reflecting a loss of assets corresponding to the failure to collect the compensation.

The DGT's ruling

The judgment ordering the payment of compensation creates a credit right, not an immediate loss of assets. For a loss of assets to exist, the credit must be judicially uncollectible, either due to a write-off in insolvency proceedings or due to the passage of one year in a judicial enforcement procedure without satisfaction of the credit. In this case, as the circumstances of article 14.2.k) of the LIRPF are not met, the imputation of the loss is not applicable.

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