Those who sell their house less than 5 years after the date of purchase, may turn to show the price of their house lower in the title deed in order to pay less Real Estate Value Increase Gain Tax. According to Article 80 of the Income Tax Law, those who dispose of their house, other than inheritance and donation, within 5 years of the date of purchase, must pay Real Estate Value Increase Tax. Those who misrepresent the sales value of their house in the deed in order to pay less taxes may face high taxes. In addition to the unpaid missing amounts, large fines await those who make improper declarations in the title deed.
İbrahim Çolak, Content Manager of the credit and insurance comparison platform Accountkurdu.com, stated that the low sales price of the real estate poses a risk for both homeowners and potential buyers, and said: He is also liable to pay a large amount of fines. After the penalties associated with under-declaring the sales price and paying a low title deed fee, more accurate prices began to be declared in the title deed. This situation has increased the value of the houses in the title deed. Those who show a low value when buying their house, when they sell their house after 5 years, show the real value, it seems that they have made a lot of profit due to the difference in buying and selling. However, due to this high profit, the tax amounts paid are also multiplied. Potential buyers, on the other hand, may have to pay higher income tax when they want to sell their house in the future.
900% more tax
Noting that the sale of the house bought by making a false declaration in the next period, on the basis of the real declaration, may cause the owners of the house to lose more than 50 thousand TL, İbrahim Çolak said, “A house declaring the value of the house bought for 2018 thousand TL in January 350 as 200 thousand TL in the deed. When the owner puts his house up for sale in January 4 after 2022 years, he may have to pay 900 thousand TL Value Increase Tax if he declares the actual value reached this time, which is 53 thousand TL. However, if the real price was declared as 350 thousand TL when purchasing the house, only 6 thousand TL title deed fee would be paid. The difference is almost 900%. In order to avoid such situations, it is absolutely necessary to declare the title deed fee over the purchase price of the house.”
Payments will be made in 2023 installments in 2.
İbrahim Çolak, Content Manager of Accountkurdu.com, stated that a declaration must be submitted until March 31, 2023 for the properties sold this year, and said, “As a result of the declaration they submitted to the Revenue Administration, they will be able to make their payments in 2023 equal installments in March and July 2. Real income is taken into account in determining the Real Estate Value Increase Tax. By calculating the difference between the purchase and sale value of the house, which is adjusted according to inflation, the real income obtained independent of inflation is found. The exemption amount announced every year, the title deed fee paid at the time of purchase and the sum of the interest paid until the sale of the housing loan, if used, are deducted from this income. Thus, there is the “taxable amount”. Tax brackets are applied to this amount. The payment can be made on the website of the Revenue Administration or from the tax offices.
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