Example: Transfer of asset-related elements subject to tax
Mr. BLT, a wooden furniture manufacturer, which determines the net income from its activity under the simplified direct estimation system, transferred a property related to its activity for the amount of 210,000 euros on June 30, 2022. On the occasion of the sale, the company paid 3,000 euros in Municipal Tax on Increase in Value of Urban Land and 10,000 euros to the real estate agency that mediated in the transaction.
The property was acquired by inheritance in 1985, with the declared value for the purposes of Inheritance and Gift Tax being an amount equivalent to 18,000 euros. In the file for verification of values carried out by the Tax Administration, said value was set at an amount equivalent to 45,000 euros.
The property was rented from its acquisition until December 31, 1997, and on January 1, 1998, the premises were allocated to the economic activity carried out by its owner. According to the IBI receipt, the cadastral value of the property in 1998 amounted to an amount equivalent to 54,000 euros, of which 40% corresponded to the value of the land.
Determine the amount and classification of the capital gain or loss obtained in said transfer, knowing that the owner of the activity has amortized said property using the maximum linear amortization coefficient established for the used assets.
Solution:
Determination of the capital gain or loss obtained :
Transmission value (210,000 – 13,000) = 197,000
Acquisition value:
Value of affectation: (1) = 54,000
(-) Amortization: From 1998 to 2021: 3% (60% s/54,000) x 24 years = 23,328
(-) Amortizations for fiscal year 2022: 1/2 [3% (60% s/54,000)] = 486
Total amortizations: (23,328 + 486) = 23,814
Total acquisition value (54,000 –23,814) =30,186
Capital gain (197,000 – 30,186) = 166,814
Note to example:
(1) Since the property was allocated prior to 01-01-1999, the value of the property for the purposes of the Wealth Tax has been taken as the acquisition value. That is, the highest value of the following three: the cadastral one, the one declared for the purposes of the Inheritance and Gift Tax and the one verified by the Administration for the purposes of the latter tax. (Back)