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V1581-22 30 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Write-off of inherited debt results in capital loss to be included in the general tax base

The taxpayers inherited a credit right that could not be fully collected due to an agreed debt write-off. The DGT ruled that this event constitutes a capital loss that must be integrated into the general tax base.

The question raised

Taxation in the Personal Income Tax of the applicants regarding the uncollected amount of the debt.

The DGT's ruling

The debt forgiveness agreed upon between creditor and debtor, which extinguishes the debt through the payment of a lesser amount, generates a capital loss for the amount not collected. As it derives from the extinction of a credit right and not from a transfer, it is considered general income pursuant to Article 45 of Law 35/2006. Therefore, its inclusion is made in the general tax base in accordance with Article 48 of the same regulation.

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