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A query was raised regarding whether the dissolution of a joint ownership (proindiviso) generates profits if proportional shares are respected. The DGT ruled that there is no change in assets or income generation if the allocation aligns with the ownership share.
Question posed 1) Whether the dissolution of the aforementioned undivided interest, provided that the previous proportional participation is respected, produces any type of asset alteration susceptible to being considered as profits.
The dissolution of communities of property does not constitute a transfer or alteration of assets. The adjudication of assets shall have the same tax valuation as that held by the fractional share in the community. If there is an excess or deficiency in the adjudication with respect to the share, this shall determine the realization of a positive or negative income.
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