Table: Adjudication excesses in the extinction of the condominium. TEAC Resolution of June 7, 2018

The following table contains the criteria established in the Resolution of the TEAC of June 7, 2018, Claim number 00/02488/2017, filed in an extraordinary appeal for unification of criteria.

**Adjudication excesses in the extinction of the condominium. Resolution of the TEAC of June 7, 2018**
Awards	Value of the property on the date of termination of the condominium	Taxation
The awards correspond to the ownership share of each commoner.	Equal to the value of the property when the condominium was established	There is no change in the assets of any of the co-owners and, therefore, there is no capital gain or loss. Article 33.2 of the Personal Income Tax Law .
	Greater than the value of the property when the condominium was established
Since the property is indivisible or loses value significantly with the division, it is awarded in its entirety to one of the co-owners with the obligation to compensate the remaining co-owners in cash.	Equal to the value of the property when the condominium was established	Communal owner to whom the property is awarded in its entirety and who compensates the others in cash: It is taxed under the documented legal acts modality of ITPAJD for the part that is acquired ex novo by virtue of such operation (criterion established in TS Judgment 1,484/2018, of October 9). Rest of the commoners who transfer their undivided participation shares in exchange for a price: Since the value of the property has not experienced an increase in value no capital gain or loss would be generated for them for a valuable consideration.
	Greater than the value of the property when the condominium was established	Communal owner to whom the property is awarded in its entirety and who compensates the others in cash: It is only taxed under the documented legal acts modality of the ITPAJD for the part that is acquired ex novo by virtue of such operation (criterion established in TS Judgment 1,484/2018, of October 9). Rest of the commoners who transfer their undivided participation shares in exchange for a price: This would generate for them a capital gain for a consideration.
It is divided among the commoners without respecting the ownership share of each one and without compensating these differences in cash.	Equal to the value of the property when the condominium was established	Owner/s who receive a portion of the property greater than what would correspond to them based on their participation quota: There is an excess of allocation when acquiring free of charge the part of the undivided share corresponding to that surplus and is taxed in the ISD for said excess allocation. Community member/s who receive a portion of the property less than what would correspond to their participation quota: They would be transferring to the first party free of charge the part of the undivided share corresponding to that deficit, producing an alteration in the composition of their assets, but given that the value of the property has not experienced an increase no capital gain or loss would be generated for them by way of profit .
	Greater than the value of the property when the condominium was established	Owner/s who receive a share of the property greater than what would correspond to them for their share of participation. There is excess of allocation by acquiring free of charge the part of the undivided share corresponding to that surplus and is taxed in the ISD for said excess of allocation Community member/s who receive a portion of the property less than what would correspond to their participation quota: They would be transferring to the first party free of charge the part of the undivided share corresponding to this deficit, producing an alteration in the composition of their assets and given that the value of the property has experienced an increase a capital gain would be generated for them by way of profit.
It is divided among the commoners without respecting the ownership share of each one, but compensating these differences in cash.	Equal to the value of the property when the condominium was established	Communal owner/s who receive a portion of the property greater than what would correspond to them based on their participation quota. There is excess of allocation when acquiring for a fee the part of the undivided share corresponding to that surplus and is taxed in the ITP for the excess of allocation Owner/s who receive a portion of the property less than what would correspond to their share of ownership and cash compensation for the remainder. They would be transferring to the first party, for a fee, the part of the undivided share corresponding to this deficit, producing an alteration in the composition of their assets, but given that the value of the property has not increased no capital gain or loss would be generated for them for a fee.
	Greater than the value of the property when the condominium was established	Communal owner/s who receive a portion of the property greater than what would correspond to them based on their participation quota. There is excess of allocation when acquiring for a fee the part of the undivided share corresponding to that surplus and is taxed in the ITP for the excess of allocation Owner/s who receive a portion of the property less than what would correspond to their share of ownership and cash compensation for the remainder. They would be transferring to the first party, for a fee, the part of the undivided share corresponding to this deficit, producing an alteration in the composition of their assets and, given that the value of the property has increased, this would generate for them a capital gain for a fee .

Note: The different situations and legal criteria established by the TEAC in this resolution of June 7, 2018 refer to the extinction of the condominium on a single real estate property

However, the TEAC resolution of June 7, 2018 indicates that in many cases co-ownership falls on several properties. Although the diversity of situations may be overwhelming, some relevant criteria can be pointed out, which we transcribe below:

First of all, it is necessary to determine in each case the existence of one or more communities of property. In this regard, and in view of the very frequent situations in practice, it must be taken into account that, although two or more properties are owned by two or more owners, this does not automatically determine the existence of a single community of property, but there may be one or more communities depending on the origin of the aforementioned community. This happens when common property comes from some hereditary acquisition and others from having been acquired by acts inter vivos, or when, even though all the property has been acquired by hereditary title, they come from different inheritances. In such cases it must be understood that there are two communities, one of inter vivos origin and another of mortis causa origin, or both of mortis causa origin, without in any way preventing the holders of the two communities from being the same persons. In the event that there are two or more condominiums, their dissolution will entail the existence of two or more different legal transactions that, as such, must be treated.
In the event that there are two or more real estate properties in the community of property, it is necessary to consider the set of assets that comprise it in order to determine whether the subsequent allocation to each of the community members corresponds or not to the respective share of ownership, so that there may not be an alteration in the composition of their respective assets. Only in the event that one of the co-owners were awarded assets or rights with a value greater than that corresponding to his or her share of ownership, would there be a change in the assets of the other, generating, in the latter, a capital gain or loss. According to the above, there would be no alteration in assets due to the dissolution of the joint ownership of the various properties, provided that the values of the allocation correspond to their respective market value and that the allocations made correspond to the respective ownership share, with the allocated assets maintaining their original values and acquisition dates.