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V1349-22 13 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains from land sales must be attributed to the year the asset disposal occurs

A taxpayer inquired whether a capital gain from a land sale in 2021, with payment received and expenses paid in 2022, should be taxed in 2021 or 2022. The DGT ruled that the gain must be attributed to the period in which the asset disposal resulting from the sale took place.

The question raised

Temporal attribution in the Personal Income Tax (IRPF) of the capital gain corresponding to the sale of a plot of land carried out in December 2021 and the collection of which was received in 2022, with most of the expenses of the operation (lawyers, experts, court representatives, etc.) also being from 2022.

The DGT's ruling

The capital gain must be attributed to the tax period in which the change in assets occurs. The inherent expenses of the transfer, even if paid in a subsequent period, do not affect the settlement of the Personal Income Tax (IRPF) for that new period, as their effect occurs by reducing the transfer value in the determination of the gain at the time of the transfer.

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