Imputation of capital loss from inherited credits in insolvency proceedings

The management of inherited credits from companies in insolvency proceedings raises doubts regarding the moment at which a capital loss can be recognized for Personal Income Tax (IRPF) purposes. A recent binding ruling from the Dirección General de Tributos (DGT) has delimited the necessary conditions for this calculation.

What the DGT has ruled

The tax administration has specified that the mere non-payment by a debtor does not, in itself, constitute an imputable capital loss. In the context of insolvency proceedings, the loss can only be calculated when the circumstances provided for in Article 14.2, letter k) of the IRPF Law are met.

One of the key scenarios is the conclusion of the insolvency proceeding through the liquidation of assets without the credit being satisfied. Likewise, the DGT establishes that the ownership of said credit must be duly proven, either through the certification issued by the insolvency administration or through other means of proof admitted under Law.

What it means for you

If you have inherited credits from a company that is in insolvency proceedings, you cannot automatically declare the loss of value of that asset due to the lack of collection. The relevance of this criterion falls directly on natural persons who find themselves in this financial situation.

For the loss to be tax-deductible, it is essential that the insolvency process reaches a liquidation phase that confirms the impossibility of collection, complying with specific legal requirements. The simple existence of the debt or the change of ownership of the credit by the insolvency administration is not sufficient to justify the capital loss if the milestones of Article 14.2 of the IRPF Law are not met.

What you should do

It is necessary to analyze the specific situation of the insolvency proceeding and verify whether the milestones required by the regulations for the imputation of the loss have been reached. It is recommended to obtain the certification from the insolvency administration that proves both the ownership of the credit and the liquidation status of the insolvency proceeding to support any action before the Tax Agency. Each situation must be assessed individually according to the status of the judicial process.