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V2762-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Seniority reductions apply to the portion of inherited property acquired before 1994

A taxpayer has requested clarification on how to tax the sale of a property inherited from their parents (who passed away in 1975 and 1996). The Directorate General of Taxes (DGT) explains that the capital gain must be calculated using two different acquisition dates, and that the portion acquired in 1975 qualifies for the reduction provided under the ninth transitional provision.

The question raised

Personal Income Tax treatment of the sale of a dwelling.

The DGT's ruling

The transfer of an interest in a dwelling generates a capital gain or loss calculated as the difference between the acquisition and transfer values. As the acquisition was via inheritance, the acquisition value is that resulting from the Inheritance and Gift Tax regulations. There are two acquisition dates: those of the deaths of the parents. The portion acquired in 1975 allows for the application of the reduction provided in the ninth transitional provision of the Personal Income Tax Law, as it was acquired before December 31, 1994.

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