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V2965-19 24 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · permuta

Exchanging land for buildings to be constructed generates a capital gain or loss

A taxpayer exchanged land for rights over housing to be built, but the developer defaulted, and the taxpayer eventually received cash after renouncing the properties. The DGT states that the exchange constitutes a capital gain or loss and that the subsequent assignment of rights for money is a separate onerous transfer.

The question raised

Taxation under Personal Income Tax (IRPF) of the facts referred to.

The DGT's ruling

The exchange of land for buildings to be constructed constitutes a capital gain or loss pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). The taxpayer may opt for the rule of imputation of installment transactions to attribute the income proportionally to the collections received. The subsequent assignment of the exchange rights in return for money is considered an onerous transfer that must be imputed in the fiscal year in which it is carried out.

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