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V1937-15 18 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Compensation for loss of rental income is taxed as income from real estate capital

A member of a community of property asks how to tax a judicial compensation of €8,050 received for loss of profits following the termination of a rental contract. The DGT responds that it must be included as income from real estate capital.

The question raised

Taxation of the compensation in the Personal Income Tax (IRPF).

The DGT's ruling

Income from communities of property is attributed to the co-owners with the nature of the source from which it originates. Compensation for loss of profits replaces uncollected rental income, and therefore qualifies as income from real estate capital. As it is neither an economic activity nor a capital gain, the reduction for irregular income under Article 23.3 of the LIRPF does not apply.

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