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V1960-17 20 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

It is possible to opt for the proportional imputation of capital gains from the sale of a dwelling in installments

A taxpayer sells her primary residence with payment deferred over five years and wishes to reinvest in another dwelling. The DGT explains that she may choose to impute the gain as the payments are received and details the conditions for the reinvestment exemption.

The question raised

Question posed: Taxation of the transaction.

The DGT's ruling

In installment transactions or those with deferred pricing, the taxpayer may opt to impute income proportionally as the payments become due. For the reinvestment exemption, the amount obtained must be allocated to the new dwelling, with the understanding that reinvestment is carried out in a timely manner if the installments are allocated to that purpose within the tax period in which they are received. The dwelling must be the primary residence for both properties, understood as such if it has been the continuous residence for at least three years.

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