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Practical Income Manual 2019.

Capital gains and losses

The determination of the attributable income will be carried out in accordance with the rules of Personal Income Tax

Depending on whether or not the attributed capital gain or loss derives from the transfer of assets, the taxpayer must include it in their declaration as follows:

  1. In the tax base generates capital gains and losses that do not arise from transfers of assets.
  2. In the tax base of savings the capital gains and losses arising from the transmission of capital elements regardless of their generation period.

In cases of transmission of a common asset, the amount of the capital gain or loss will be calculated by the entity with respect to each partner, heir, community member or participant taking into account their participation in the ownership of the asset or the real right over it. due to the difference between their acquisition and transfer values, applying, where appropriate, the ninth transitional provision of the Personal Income Tax Law only on the capital gains corresponding to those partners, heirs, community members or participants that they had acquired prior to December 31, 1994, which requires communication by them of the necessary information to apply the new limit of 400,000 euros established by the aforementioned ninth transitional provision (limit that is individual).

The specialties relating to the application of the reducing coefficients to capital gains derived from transfers of unaffected assets acquired before December 31, 1994, are discussed in Chapter 11.

Note: for the calculation of income from capital gains derived from the transmission of elements not affected by the development of economic activities, which must be attributed to the members of these entities, who are taxpayers of Corporate Tax or taxpayers of Income Tax of non-residents with a permanent establishment or without a permanent establishment who are not natural persons, the reduction or abatement coefficients referred to in the ninth transitional provision of the Personal Income Tax Law will not apply.