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V1999-18 4 July 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · comunidad de bienes

Dissolution of joint ownership must be handled separately to avoid taxation on onerous transfers

A taxpayer requested to divide properties from two different inheritances (father and mother) within a single deed. The DGT ruled that since these represent two distinct joint ownerships, they must be dissolved separately to avoid being classified as a barter (permuta).

The question raised

1- Taxation of the operation.

The DGT's ruling

Each community of property must be dissolved independently, without exchanging assets between them, to prevent the operation from being considered a barter subject to onerous transfers of property. If the allocations maintain the proportion of the shares and any excess in allocation is unavoidable and compensated in cash, it shall only be taxed as documented legal acts. If assets from one community are bartered to compensate the other, or if avoidable excesses in allocation occur, the tax on onerous transfers of property shall apply.

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