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V1891-14 15 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · tributación conjunta

Parents cannot split their children's capital losses in individual tax returns

A query was raised regarding whether parents can divide their children's capital losses between their own individual income tax returns. The Directorate General of Taxes (DGT) has ruled that such losses must be accounted for in the children's own tax returns, in accordance with the rules for the individualisation of income.

The question raised

Can parents, in their individual income tax returns, split equally the capital losses of their children?

The DGT's ruling

If joint taxation is not opted for, the members of the family unit must use the individual tax return regime. Capital gains and losses are considered to be obtained by the taxpayers who are the owners of the assets, rights, and patrimonial elements from which they derive.

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