Use of the value verified by the Autonomous Community for Personal Income Tax (IRPF) calculations

Determining the acquisition value of a property is a critical element when calculating capital gains or losses for Personal Income Tax (IRPF). A recurring question arises when the regional Administration performs a value verification during the settlement of Transfer Tax and Stamp Duty (ITP-AJD).

What the DGT has ruled

The Dirección General de Tributos (DGT) has clarified that the acquisition value for IRPF is composed of the actual purchase amount, plus the expenses, investments, and taxes inherent to the transaction. In this sense, the inquiry addresses whether, in the event of a value verification carried out by the Autonomous Community, said revised value should prevail for IRPF purposes.

The binding ruling indicates that, in accordance with Supreme Court jurisprudence, if a value verification took place for ITP-AJD, the value that the Administration has determined to be correct must be considered the actual amount. Therefore, this verified value is what must be used to determine the capital gain or loss in the future transfer of the property.

What it means for you

If you are an individual who has acquired a property and the regional Administration has reviewed and adjusted the transaction value for transfer tax, this adjustment has direct consequences on your income tax return. You cannot use the price appearing in your deed of sale if it has been modified by a value verification from the competent authority.

This adjustment directly impacts the IRPF taxable base, as it modifies the difference between the transfer value and the acquisition value. A higher acquisition value, derived from the verification, could reduce the capital gain or increase the capital loss at the time of sale.

What you should do

It is fundamental to maintain an accurate record of all administrative actions related to the acquisition of the property. In the event of a value review by the Autonomous Community, it is necessary to verify how this adjustment affects the future IRPF settlement. It is recommended to assess each particular situation to ensure that the calculation of capital gains or losses strictly adheres to current regulations and the Administration's criteria.