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V3478-15 12 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Award of a property in a mortgage enforcement procedure results in capital gain or loss

The consultant asks about the tax treatment of a property awarded in a mortgage enforcement procedure where they acted as a guarantor. The DGT states that the transfer gives rise to a capital gain or loss, and that a loss from debt repayment requires exhausting the possibility of recovering it from the debtor.

The question raised

Tax treatment under Personal Income Tax regarding the adjudication of the premises that guarantees the loan in a foreclosure proceeding.

The DGT's ruling

The transfer of the premises in a foreclosure proceeding generates a capital gain or loss calculated by the difference between the adjudication value and the acquisition value. The payment obligation assumed as a guarantor constitutes a capital loss only when the legal possibilities of passing the payment on to the debtor are exhausted. These losses due to overdue credits may be imputed according to the circumstances of Law 26/2014, being integrated into the general taxable base.

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