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V2751-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · sociedad de gananciales

Dissolution of community property does not trigger capital gains if ownership shares are correctly allocated

The applicant seeks clarification on the taxation of the dissolution of their community property, the assumption of a mortgage debt, and a potential subsequent exchange. The DGT rules that dissolution is not subject to Personal Income Tax (IRPF) provided the respective ownership shares are respected, and that the assumption of debt does not constitute a gift.

The question raised

1. Taxation of the dissolution of the community property regime.

The DGT's ruling

The dissolution of the community property regime does not constitute an alteration in the composition of assets for Personal Income Tax purposes, provided that the adjudication corresponds to the ownership share of each spouse. In this case, no capital gains or losses are generated, and the assets retain their original value and acquisition date. If a subsequent exchange of the adjudicated assets occurs, the gain or loss shall be determined by the difference between the acquisition value of the transferred asset and the higher of its market value or the value of the asset received.

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