That oft-repeated mantra, which says that new generations will live worse than their parents, is becoming evident with the exorbitant price of housing in relation to salaries. This explains the sharp increase in donations of housing from parents to children greater than 23% in the last five years.
Each autonomous community has a specific type of Inheritance and Donation Tax that taxes all assets donated or inherited by descendants. Like almost all inherited assets, shares They are taxed in the Donations and Inheritance Tax. To do this, the value of the stock securities is counted and added to the rest of the inheritance to calculate the tax base or money that is inherited and on which the tax will be paid. But in addition to this tax, in the case of listed assets such as bonds, shares, investment funds, etc., the heir or the person who receives the donation must pay the Treasury when they sell those assets in the event that there is a capital gain.
There is a very clear differentiation between inheritance and donation when it comes to listed assets such as shares. In the case of inheritance, after paying the general tax, the reference price of the share or fund is determined by the date of death of the legatee regardless of whether or not it had obtained capital gains. This is what is known as the dead man’s capital gains. Thus, if the heir later sells those shares, it will take the value marked on the day of death and the capital gain or loss will be calculated with the day after he decides to sell the shares or units of the fund. Of course, during the period you hold the shares will also have to pay for the dividends received or any other incentive since it is the owner of the titles.
The donation is much more detrimental to the recipient of the shares or shares.For example. The purchase price will be the one paid by the donor at the time. To calculate profits or losses, that price and the price at which the beneficiary of the donation sold the securities will be taken. The cases can be very varied, but the logical thing is that in many years a significant profit has been generated that must be paid by the recipient of the donation. Here, obviously, the dead man’s capital gains does not exist, but rather it is considered a transfer with the donor’s purchase date.
The tax reform that came into effect on January 1, 1997 eliminated the corrective coefficients for capital gains for all financial assets acquired after December 31, 1994. As of January 1, 2015, a maximum limit was imposed to continue applying these benefits to old assets (acquired before December 31, 1994). Reducing coefficients can only be applied if the transfer value of all assets sold since that date does not exceed a cumulative limit of 400,000 euros.
An easy way to get around this difficulty is for the donor sells the shares and assumes the capital gain generated and then where the family member receives the cash for which they will only have to pay the Donation and Inheritance Tax.