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V2195-20 29 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Mortgage cancellation is not an inherent expense in the sale of a property

A query was raised regarding whether funds allocated by judicial mandate to cancel a mortgage can be considered an expense in the transfer of an inherited property. The DGT ruled that it is not a sale expense, but rather the intended use of the proceeds obtained.

The question raised

Upon the court order establishing that the amount received from the sale must be allocated to the cancellation of the mortgage, it is asked whether this cancellation can be considered an expense inherent to the transfer.

The DGT's ruling

The cancellation of the mortgage constitutes the destination in which the amount obtained from the sale is invested. Therefore, it cannot be classified as an expense inherent to the transfer, as it is not an expense produced by the sale, but rather the application of the amount obtained to a specific purpose.

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