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V1350-19 10 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · disolución de la comunidad de bienes

Awarding an asset at a value exceeding the ownership share results in a capital gain or loss

A taxpayer asks whether the dissolution of a co-ownership arrangement, where one sibling is awarded the property by compensating the others in cash, triggers taxation. The DGT rules that if the award exceeds the ownership 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 conforms to the ownership share. However, if assets are allocated at a value higher than the corresponding share, an alteration of assets occurs for the other co-owners. This generates a capital gain or loss, with or without cash compensation, calculated by the difference between the acquisition and transfer values.

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