Daily Tax Report: International

Italy Tax Agency Clarifies Tax Treatment of Block Sale of Leased Property

Feb. 18, 2020, 5:00 AM

The Italian Revenue Agency Feb. 12 posted online a letter clarifying the tax treatment of a block sale of properties from the termination of a financial lease contract. A financial intermediary entered into a preliminary contract with a company for the sale of property that was under a financial lease contract. The intermediary then claimed tax benefits under a rule on property sales related to breached lease contracts. The letter clarified that: 1) the tax benefits cannot be claimed because the financial intermediary didn’t receive the property through termination by the breach of a lease contract, but by a block...

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