Tax on real estate gains

Author : Kristen

Tax on real estate gains

Tax on real estate gain is levied on profit earned from the sale of real estate minus allowances (brokerage fees, transfer duties, value added works, etc.

The seller pays the tax on real estate gain. If the seller is not able to do so, the residential property is encumbered with a statutory lien (statutory mortgage). In order to avoid this situation, we suggest that you request the seller to take measures to ensure the payment of the real estate gain tax.

Owners who plan to one day sell their primary residence to purchase another one can appeal to their claim for replacement. The tax on real estate gain will be deferred, entirely or in part, depending on the ration between profit and reinvestment.

When the renovations are completed, their cost will be deducted from income taxes. Since only value-maintaining investments are deductible from taxable income, only a part of them will be accepted by tax authorities as maintenance costs. As for these generators of capital gain, they will be included as production costs in the calculation of real estate gain tax if you sell your residence. Therefore, it is important to keep track of all evidence of property-related costs (for at least 20 years or until the sale of the real estate).

 
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