For individuals, capital growth is a taxable source of income. The Tax Service specifies that the amount of the capital gain arising from the sale, exchange or other disposal of capital assets is equal to the difference between the income received and the expenses incurred for the purchase or creation of capital assets. These expenses are to be confirmed in the manner established by law, IPN reports.

When disposing of the capital asset, the individual shall calculate the income tax and take into account the taxable amount of the capital increase, which constitutes 50% of the size of the capital increase, and tax it according to the provisions of the Tax Code.

The capital gain is not recognized for tax purposes in the case of redistribution of property between spouses or former spouses. It is also not recognized when a contract of gift is concluded between first-degree relatives as well as between spouses, on the alienation of the main residence and on the alienation of a motor vehicle that has been owned by the taxpayer for at least 3 years prior to the date of alienation, with the exception of collector's vehicles of historical or ethnographic interest.

If the person makes a donation, he is deemed to have sold the donated property at a price representing the maximum of its adjusted basis in value or its market price at the time of donation.

The deadline for filing the Nonbusiness Individual Income Tax Return for 2024 is April 30.