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V3407-20 24 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · división de la cosa común

Capital gains or losses arise if asset allocation in the division of common property exceeds ownership share

The applicant inquires about the tax implications of dissolving co-ownership of a property by allocating the estate to a spouse and receiving monetary compensation. The DGT rules that if the allocation exceeds the individual's ownership share, it constitutes an asset alteration that generates a capital gain or loss.

The question raised

Taxation of the dissolution of co-ownership under Personal Income Tax.

The DGT's ruling

The division of common property does not constitute a change in assets if the allocation corresponds to the ownership share. However, if assets are allocated at a value exceeding said share, a change in assets occurs for the other co-owners, generating a capital gain or loss regardless of whether cash compensation is provided. In the case of individuals over 65 years of age, the gain may be exempt if the property is considered a primary residence at the time of transfer or during the two preceding years.

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