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V1691-19 9 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains or losses from the sale of community property are split equally between spouses

A query was made regarding the tax treatment of the sale of two properties held under a community property regime and how the resulting proceeds should be allocated. The DGT ruled that any gain or loss must be divided equally between the spouses.

The question raised

Tax treatment of the potential sale of both properties under Personal Income Tax and the imputation to both spouses.

The DGT's ruling

The transfer of real estate generates a capital gain or loss based on the difference between the transfer value and the acquisition value. In the case of assets of a community property nature, capital gains or losses shall be imputed to both spouses in equal shares, in accordance with the rules of legal ownership. For real estate acquired before 1995, a reduction may be applied to the portion of the gain generated before January 2006 under the limits of the ninth transitional provision of the Personal Income Tax Law.

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