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V3569-20 16 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Option to proportionally attribute capital gains from instalment sales of real estate

A taxpayer has enquired about when to declare the gain from the sale of a property with a deferred payment plan spanning ten years. The DGT clarifies that the taxpayer may choose between declaring the total gain in the year of sale or attributing it proportionally based on the payments received.

The question raised

Question posed: Temporal attribution of the gain obtained in the Personal Income Tax, taking into account that it is possible that the non-deferred part of the price is received in January 2021.

The DGT's ruling

The capital gain or loss is attributed to the period in which the change in assets occurs. However, in installment transactions or those with deferred pricing, the taxpayer may opt to attribute the income proportionally as the payments become due. An installment transaction is considered to be one where the period between the delivery and the final installment exceeds one year.

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