Practical case

Mr. JPC has carried out the following operations with tax significance during the 2023 financial year:

• On March 3, 2023, it sold 11.2568 shares in the investment fund "X", NIF G83000000, for 15,800 euros, after deducting the expenses inherent to the transfer paid by it. These shares were acquired on 10-05-2004 for an amount of 15,000 euros, including acquisition costs.

• On July 1, 2023, he sold an apartment, located at 10 Toledo Street, Madrid, for an amount of 150,000 euros, paying 1,900 euros in Municipal Tax on the Increase in Value of Urban Land.

  The flat was purchased on 20-12-1994 for an amount equivalent to 90,000 euros, this being the amount declared as the taxable base for the purposes of the Property Transfer Tax. The expenses inherent to the acquisition paid by the purchaser in January 1995, for notary fees, registration and transfer tax, amounted to an amount equivalent to 8,000 euros.

  The cadastral value of the flat in 1994 was equivalent to 27,000 euros, of which 40% corresponded to the value of the land. Mr. JPC He rented the apartment in 1995 and 1996. The property's cadastral reference is 0042807VK4704A0003KI.

• On July 16, 2023, 1,000 shares of TSA, which is listed on the Stock Exchange, will be transferred, obtaining an amount of 12,000 euros, after deducting the expenses inherent to the sale. These shares were acquired on 25-05-2015, for an amount of 16,800 euros, including the costs incidental to said acquisition.

• On August 16, 2023, the company proceeds to acquire 1,000 homogeneous shares of TSA, for 16,500 euros, including additional acquisition costs.

• On June 23, 2009, it acquired preferred shares originally issued by a savings bank for an amount of 15,500 euros. In February 2012, it accepted an offer to purchase these securities for an amount equivalent to 100% of their nominal value, which was applied to the simultaneous subscription of 5,000 shares of the ZK bank into which the financial business of the Savings Bank was integrated. On 14-11-2023, the company sold all of its shares for an amount of 6,560 euros.

Determine the amount and qualification of the capital gains or losses obtained by the taxpayer in the year 2023, taking into account that no transfer of assets has been made since January 1 2015, to which the ninth transitional provision of the Income Tax Law was applicable.

Solution:

1. Transfer of shares in the investment fund "X":

Transfer value: 15.800

Acquisition value: 15,000

Capital gain (15,800 - 15,000) = 800

Qualification and declaration of capital gains

Since the capital gain arises from the transfer of shares in a movable investment fund, it must be declared in the subsection "Capital gains and losses subject to withholding or payment on account arising from transfers or reimbursements of shares or interests in collective investment institutions (investment companies and funds)" of section F2 of the declaration.

2. Floor transmission:

Transmission value (150,000 – 1,900) ⁽¹⁾ = 148,100

Cost price ⁽²⁾: 96.380

Capital gain (148,100.00 – 96,380.00) = 51,720

Reducible capital gain (generated until 19-01-2006)

(51,720 x 4,049) ÷ 10,420 ⁽³⁾ = 20,097.34

Number of years of permanence as of 31-12-1996: 3 years

Reduction by abatement coefficients (20,097.34 x 11.11%) = 2,232.81

Reduced capital gain (51,720 –2,232.81) = 49,487.19

Qualification and declaration of capital gains

When deriving the capital gain from the transfer of a capital asset (real estate), it is included in the taxable base for savings and must be declared in the subsection "Capital gains and losses derived from the transfer of real estate and real rights over real estate" in section F2 of the declaration.

3. Sale of shares with repurchase of homogeneous securities:

Transfer value: 12,000

Acquisition value: 16.800

Capital loss (12,000 - 16,800) = - 4,800

Qualification and declaration of capital loss

When deriving the capital loss from a transfer of shares traded on official markets (to be included in the savings tax base), it should be declared in the subsection "Capital gains and losses derived from transfers of traded shares or participations" of section F2 of the declaration. However, since a repurchase of homogeneous shares has taken place within the period established by law (two months), this loss cannot be included in the declaration for the fiscal year itself, but rather in the declaration for the fiscal year in which the total or partial transfer of the acquired shares takes place.

4. Sale of shares received through exchange of preferred stock securities

Transfer value: 6.560

Acquisition value: 15,500

Capital loss (6,560 - 15,500) = - 8,940

Qualification and declaration of capital loss

Since the capital loss is derived from a transfer of shares traded on official markets that were received through the exchange of preferred share securities (to be included in the taxable savings base), it must be declared in the subsection "Capital gains and losses derived from transfers of traded shares or interests" of section F2 of the declaration.

Notes to the example:

⁽¹⁾ The amount paid for the Municipal Tax on the Increase in Value of Urban Land has been deducted from the transfer value. ^(Back)

⁽²⁾ The acquisition value is determined as follows:

- Actual acquisition amount: (90,000): +90,000

- Expenses and taxes: (8,000): +8,000

- Amortization for 1995 and 1996 [(1.5% s/90,000 x 0.6) x 2] = –1. 620

Total acquisition value (90,000+8,000-1,620) = 96,380

The depreciation for the years 1995 and 1996 has been calculated on the value of the flat for the purposes of the Wealth Tax, excluding the value corresponding to the land. This value, according to the specifications contained in the Real Estate Tax receipt, represents 40 percent of the total. Likewise, the percentage of 1.5% has been used to calculate said amortizations, as this is the one that corresponds in accordance with the provisions of the previous Regulation of Personal Income Tax . ^(Back)

⁽³⁾ The capital gain generated up to 19-01-2006 has been determined by distributing the total capital gain between the number of days existing between the date of acquisition of the apartment (20-12-1994) and 19-01-2006, which amounts to 4,049 days, with respect to the total number of days that the apartment has remained in the taxpayer's assets, that is, between the days 20-12-1994 and 01-07-2023, which amounts to 10,420 days. ^(Back)