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V1985-18 3 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

IIVTNU and mortgage cancellation costs may be deducted from capital gains on property sales

A taxpayer inquired whether the tax on the increase in value of urban land (IIVTNU) and mortgage cancellation costs could be included in their Personal Income Tax (IRPF) filing. The Directorate General for Tax Regulations (DGT) ruled that these costs are deductible from the transfer value when calculating capital gains.

The question raised

Impact of the Tax on the Increase in the Value of Urban Land (IIVTNU), not yet settled by the city council, and mortgage cancellation expenses on Personal Income Tax (IRPF) taxation.

The DGT's ruling

The transfer value is determined by the actual amount of the disposal, from which the expenses and taxes inherent to the transfer paid by the transferor are deducted. Therefore, the payment of the Tax on the Increase in the Value of Urban Land (IIVTNU) and mortgage cancellation expenses may reduce the transfer value. If these expenses were not included in the tax return for the year of the sale, the taxpayer may request a rectification of the self-assessment.

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