Post by account_disabled on Mar 7, 2024 15:22:13 GMT 4
The General Directorate of Taxes (DGT) analyzes, in its query number V2230-21, dated the issue raised by a person who sells land acquired in 2018 in 2020. To carry out the sale, it requires the advice from a lawyer who pays a fee . The question therefore arises of determining whether or not the fees paid for the lawyer's advice in the sale of the land constitute a lower transfer value , for the purposes of calculating the capital gain or loss derived from the transfer in the Personal Income Tax (IRPF).
Index What are the issues raised before the Asia Mobile Number List DGT? In conclusion… If you want to know more… What are the issues raised before the DGT? In accordance with article 33.1 of Law 35/2006, of November 28, on the Personal Income Tax (LIRPF), the transfer of the land generates a capital gain or loss in the transferor, when a variation occurs in the value of its heritage revealed on the occasion of an alteration in its composition. The amount of the capital gain or loss will be determined by the difference between the acquisition and transfer values of the assets, as established in article 34.1.a) of the LIRPF.
For its part, article 35 LIRPF includes the determination of the acquisition and transfer values, for these purposes the transfer value being configured as the actual amount for which the sale would have been carried out, deducting the expenses and taxes included in the provision, in the extent to which they are satisfied by the transferor. The actual value will be understood as the amount actually paid, unless it is lower than the normal market value, in which case the market value will prevail. In the present case, expenses inherent to the transfer operation can be understood as those that correspond to actions directly related to the sale of the property.
In accordance with the doctrine established by the Management Center, for example in DGT Consultation V0926-18, of it is concluded that the fees paid to the lawyer to manage the sale are an expense inherent to the transfer that will reduce the transfer value for the purposes of determining the capital gain or loss for personal income tax purposes. This expense must be accredited by the consultant. In conclusion… In the case analyzed, it is concluded that the expenses for fees of a lawyer who manages the sale of land constitute an expense inherent to it, reducing the transfer value for personal income tax purposes , to determine the capital gain or loss. If you want to know more… Consultation Consultation dated .
Index What are the issues raised before the Asia Mobile Number List DGT? In conclusion… If you want to know more… What are the issues raised before the DGT? In accordance with article 33.1 of Law 35/2006, of November 28, on the Personal Income Tax (LIRPF), the transfer of the land generates a capital gain or loss in the transferor, when a variation occurs in the value of its heritage revealed on the occasion of an alteration in its composition. The amount of the capital gain or loss will be determined by the difference between the acquisition and transfer values of the assets, as established in article 34.1.a) of the LIRPF.
For its part, article 35 LIRPF includes the determination of the acquisition and transfer values, for these purposes the transfer value being configured as the actual amount for which the sale would have been carried out, deducting the expenses and taxes included in the provision, in the extent to which they are satisfied by the transferor. The actual value will be understood as the amount actually paid, unless it is lower than the normal market value, in which case the market value will prevail. In the present case, expenses inherent to the transfer operation can be understood as those that correspond to actions directly related to the sale of the property.
In accordance with the doctrine established by the Management Center, for example in DGT Consultation V0926-18, of it is concluded that the fees paid to the lawyer to manage the sale are an expense inherent to the transfer that will reduce the transfer value for the purposes of determining the capital gain or loss for personal income tax purposes. This expense must be accredited by the consultant. In conclusion… In the case analyzed, it is concluded that the expenses for fees of a lawyer who manages the sale of land constitute an expense inherent to it, reducing the transfer value for personal income tax purposes , to determine the capital gain or loss. If you want to know more… Consultation Consultation dated .