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V0909-18 9 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Selling personal clothing may result in capital gains or losses for Income Tax purposes

A taxpayer has enquired about the taxation of clothing purchased in previous decades. The Directorate General of Taxes (DGT) has ruled that, if carried out on a private basis, the sale generates a capital gain or loss.

The question raised

Taxation of sales under the Personal Income Tax.

The DGT's ruling

The sale of clothing in a private capacity constitutes a capital gain or loss pursuant to Article 33 of the Personal Income Tax Law (LIRPF). Capital losses resulting from consumption shall not be accounted for; therefore, it is not appropriate to account for a loss if the decrease in value is due to normal use. The acquisition and transfer values shall be determined in accordance with Articles 34 and 35 of the LIRPF, and the acquisition value may be substantiated by the means of proof admitted under Law.

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