Heirs may include tax and expenses in the acquisition value of an asset

The calculation of capital gains or losses following the sale of an asset received through inheritance is a critical aspect of the Personal Income Tax (IRPF) declaration. A recent ruling by the Directorate General of Taxes (DGT) has specified the elements that must constitute the acquisition value of these assets.

What the DGT has ruled

The tax administration has clarified that the acquisition value of an inherited asset is not limited solely to the value assigned in the inheritance settlement. For IRPF purposes, this value is composed of the following concepts:

• The inheritance value: The value assigned to the asset according to the rules of the Inheritance and Gift Tax, subject to the market value limit.
• The tax quota: The portion of the Inheritance Tax quota paid by the heir.
• Inherent expenses and taxes: All taxes and expenses necessary for the acquisition, such as notary fees, registry expenses, and management services.

Furthermore, the DGT confirms that the acquisition date is backdated to the moment of the deceased's death. On the other hand, the transfer value will be the actual amount of the disposal, provided it is not lower than the market value, deducting the expenses inherent to the transfer itself.

What this means for you

If you have inherited a property or any other asset and plan to sell it, this criterion is fundamental to avoid excessive tax payments. By being able to include the Inheritance Tax quota and notary or registry expenses in the acquisition value, the amount upon which the capital gain is calculated increases. A higher acquisition value reduces the difference between the sale price and the purchase price, resulting in a lower taxable base for IRPF.

What you should do

It is necessary to keep all documentation that proves both the value assigned in the Inheritance Tax settlement and the proof of payment for the tax quota and management expenses (notary, registry, and management services). The correct integration of these costs is decisive for calculating capital gains or losses. It is recommended to assess each particular situation to ensure that the declared taxable base is correct in accordance with current regulations.