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V2233-18 26 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of inherited property generates capital gains; subsequent cash donation is not subject to Income Tax

A taxpayer inquired about the taxation of selling an inherited property and subsequently donating the proceeds to their mother. The DGT ruled that the sale generates a capital gain or loss for Income Tax purposes, whereas the donation falls outside the scope of Income Tax as it is subject to Inheritance and Gift Tax.

The question raised

Taxation of the operations referred to in the Personal Income Tax.

The DGT's ruling

The transfer of the dwelling generates a capital gain or loss based on the difference between the acquisition and transfer values. The acquisition value shall be the result of applying the rules of the Inheritance and Gift Tax, plus inherent expenses and taxes, without exceeding the market value. The donation of money to the mother has no impact on the donor's Personal Income Tax, and the donee shall not be taxed under this tax because the operation is subject to the Inheritance and Gift Tax.

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