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Practical manual for Income Tax 2020.

Example 3: Determination of the amount of gain not derived from the transfer of assets

In May 2020 Mr. PAG He won a prize in a television competition consisting of an apartment on the beach, the acquisition cost of which for the entity granting the prize, which coincides with its market value, amounted to 60,000 euros. The expenses inherent to the acquisition paid by Mr. PAG were 5,700 euros.

Determine the amount of the computable capital gain.

Solution:

Valuation (market value) = 60,000

Income to account = 13,680 (1)

Capital gain (60,000 + 13,680) = 73,680

Notes to the example:

(1) The payment on account made by the entity granting the prize has been determined by taking as a basis the acquisition cost increased by 20% and applying to it the percentage of 19% (valid in 2020). That is to say: 19% s/(60,000 x 1.2) = 13,680 euros. The taxpayer may deduct this last amount in his/her tax return together with the remaining withholdings and payments made on account. (Back)