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V1349-19 10 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · extinción de condominio

Allocation of an asset exceeding ownership share results in capital gain or loss

A query was raised regarding whether the dissolution of co-ownership, where one owner receives the property and compensates the other in cash, triggers taxation. The DGT ruled that if the allocation exceeds the owner's share, it constitutes a change in assets that generates a capital gain or loss.

The question raised

Taxation under Personal Income Tax.

The DGT's ruling

The dissolution of a community of property does not alter the composition of the assets if the allocation corresponds to the ownership share. However, if assets are allocated at a value higher than the share, an alteration of assets occurs, generating a capital gain or loss for the other co-owners. This amount is determined by the difference between the acquisition and transfer values, regardless of whether there is cash compensation.

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