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V2440-20 16 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Compensation paid to buyer for latent defects may reduce the property's transfer value

A taxpayer enquired whether funds paid to a buyer following a settlement for latent defects in a property affect the calculation of capital gains or losses. The DGT ruled that such an amount may be considered a reduction in the sale price.

The question raised

Impact on the determination of the capital gain or loss resulting from the transfer of the amount paid to the buyer for latent defects.

The DGT's ruling

The amount paid to the buyer for the repair of latent defects has an impact on the capital gain or loss as a reduction in the transfer price. To this end, the existence of the defects and their correspondence with the amount paid must be proven through the means of evidence admitted under Law. The assessment of such evidence is the responsibility of the tax management and inspection bodies.

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