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V3106-20 16 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Establishing a community of property over a pharmacy may generate business income and capital gains

A pharmacist married under the community property regime seeks advice on the tax implications of forming a community of property with their spouse for their business activity. The DGT explains that the transfer of stock and half of the goodwill generates either business income or capital gains, depending on the nature of the assets.

The question raised

Effects on Personal Income Tax resulting from the constitution of the community of property.

The DGT's ruling

The transfer of inventory to the community of property generates income from economic activity based on the normal market value. Tangible fixed assets may generate capital gains or losses if the assets are separate property, but not if they are community property. The transfer of half of the goodwill implies the realization of a capital gain by the original owner.

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