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Federal Tax Service about the transaction

But paying personal income tax is not always mandatory, and in some cases it can be significantly reduced.For example, the law establishes a minimum period of ownership of property. This is the period of ownership, after which no tax will be charged on purchase and sale transactions.

Depending on the circumstances of office 365 data acquiring the right of ownership, this period is from 3 to 5 years. It is determined depending on the method of acquisition, the year of purchase and the number of similar objects owned by the owner. With movable property, the situation is simpler: the minimum period of ownership is always 3 years.

Sale of the only home

If the minimum ownership period has expired, then there is no need to file a tax return after the sale and notify the Federal Tax Service about the transaction. But there are also controversial situations. For example, if the owner owned part of the shared property longer than the established period, and then bought out the remaining shares and sold the apartment during the same year. In this case, the Federal Tax Service can send him a notice of the need to pay the tax. But this does not mean that the seller will have to pay it – it is enough to provide supporting documents for consideration through the personal account on the website.

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Reduction of income by expenses incurred

Starting in 2020, the owner has the right to sell his only home without having to file a declaration and pay personal income tax. But this jason berryhill director of it can only be done with real estate that has been in possession for at least three years.

To take advantage of this opportunity, the following requirements must be met:

  • the seller must not own any other residential property;
  • New housing can be purchased within 90 days before the sale of the old one – the one on which the tax is calculated.

In this case, the apartment being sold must brazil data be the sole property of each spouse. If the husband or wife of the property owner owns other real estate or a share of it. Then the apartment being sold will no longer be considered the sole home of their family. In this case, the income received from the sale of the property must be declared.

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The tax paid can be reduced by deductin

The amount of expenses for the acquisition of the property. This means that the tax will be calculated based on the result of the difference between the income from the sale and the expenses for the purchase of the home. If the expenses exceed the income, then no tax is paid at all.

 
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