Is There a 5 Year Exemption for Real Property Sales?

Share on Facebook0Share on Google+0Tweet about this on TwitterShare on LinkedIn0

According to Revenue Law, increment value tax has to be paid due to sale of real property. This tax is paid if the real property is sold within 5 years from the date of acquisition. There is no need to pay the income taxes for real properties that have more than 5 years old.

The income tax is paid in two equal installments within the year following the date of sale. First installment payments for taxes are paid in March,  second installment payments are paid in July.

About tax application some of changes were included in 64th Government Programme. According to these changes, there will be no limitation for tax, and it will be paid for all real properties sold.

The tax is paid if the income is higher than the specified exceptional limit. This limit is re-determined every year. The exemption for the increment value tax for the year 2018 was determined as 12.000 TL.

real-estate.jpg

So, is there a limit of 5 years in the increment value tax?

5 year exemption from the sale of real property has not yet been abolished. After the new income tax law come into force, cumulative multi-stage tax will be applied instead of absolute taxation. So, what is the cumulative multi-stage tax? How will it be implemented?

If the real property is sold in 2 years, 40% of its value

If the real property is sold in 3 years, 50% of its value

If the real property is sold in 4 years, 60% of its value

If the real property is sold in 5 years, 75% of its value will be exempted and the the income tax will be paid.

How the tax will be calculated?

If the real estate is sold in 2 years, 60% of its value

If the real estate is sold in 3 years, 50% of its value

If the real estate is sold in 4 years, 40% of its value

If the property is sold after 5 years and after %25 of the value of the tax will be calculated.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *