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How Much Tax Is Paid On The Sale Of A House?

How Much Tax Is Paid On The Sale Of A House?

The person who wants to sell a house without a problem must be up to date on property, electricity and water payments, have the deeds of the property in their name and cover the tax generated by this real estate transaction.

As a seller, if you have all your papers in order, you only have to pay the income tax, derived from the profit between the price you bought and the price at which you sell, so it is advisable that you go with a notary public, so that he or she can indicate how much the real estate tax would go up and do not be surprised when the property is already committed or until you have received some advance in terms of sale of the house.

The real estate laws provide several reasons why this tax will not be paid, and among its fractions are those relating to the real estate that change the ownership, the person who adjudicates the ownership of a property for some inheritance, will not pay this tax, even when the property is given in the life of the owners, as long as it is done between parents and children, children to parents or between married couples by separate property regime.

If the seller proves to the notary that he or she is selling the house in which he or she currently lives, by displaying the recent receipts of electricity, telephone, bank account or credit card statements, which must be in the name of the seller, spouse, parents or children and with the address of the property that sells, will not pay any real estate tax for the operation.

Previously, the regulation authorities spoke of presenting the two year vouchers, now it is only six months, but this limits the amount of meters and you can use this benefit once for each fiscal year.

There is also the possibility that if the price you sell is very low, at least 10% less of the appraised or cadastral value, depending on the state where the real estate property is located.

This is important for the reason that there is a mistaken idea that when mentioning a price lower than the agreed to the notary will let you pay less taxes. You must be careful, as this is called tax fraud, so it is better that you talk with the notary before celebrating the transaction, so that you are well advised.

If the sale is for only the land or a commercial property, the benefit of the exemption is not enjoyed and in the case of commercial properties, the buyer will pay VAT on the buildings.


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