Apartment sales tax is a financial responsibility that belongs to the real estate seller. However, there may be situations where you do not have to pay.
When you do not pay tax on the sale of the apartment?
Flat sale tax applies to natives. It must be resolved by the tax office in accordance with the deadline provided in the Law. It is 19% calculated on earned income. You can avoid paying taxes if:
- the taxpayer will provide the sum obtained from the sale of real estate for his residential purpose (3 years are provided for this purpose, counting from the end of the tax year in which the apartment was sold). If it is only a part of this amount, it is possible to reduce the tax,
- the apartment was sold after 5 years of taxation from the time of its purchase. Then you also don’t have to file a tax return,
- the taxpayer sold the flat at a cheaper price than he bought it for.
Article 30 e. 1. From the income from the sale of real estate and the rights mentioned in Art. 10 sec. 1 point 8 lit. ac, income tax is 19% of the tax base. 2. The basis for calculating the tax referred to in paragraph. 1, is the income that includes the difference between the income from the disposal of immovable property or consideration rights determined in accordance with art. 19, and costs determined in accordance with Art. 22 sec. 6c and 6d, increased by the total depreciation referred to in Art. 22h sec. 1 point, made on real estate or rights sold. 3. In the case of disposal by way of exchange of immovable property or rights mentioned in Art. 10 sec. 1 point 8 lit. ac, income is determined for each of the parties to the contract under the conditions referred to in paragraph 2.
Tax deduction for the sale of an apartment
The following can be considered tax deductible expenses:
- the purchase price of the apartment,
- expenses incurred in connection with the repair or improvement of the property,
- tax on civil law activities,
- fees for preparing a notarial document.
If the house was bought without any personal contribution, for example inherited from a relative, the following can be included in the tax deductible expenses:
- gift value and inheritance tax,
- reserved portion paid,
- debts paid.
Reducing the amount of taxable income is possible if all tax deductible expenses are included in the payment. Apartment sales tax must be submitted in form PIT-39.
Article 30 e. After the end of the tax year, the taxpayer is obliged in the tax returns referred to in art. 45 sec. 1Step 3, indicate: 1) income received in the tax year from the sale of real estate and property rights referred to in art. 10 sec. 1 point 8 lit. ac and calculate the income tax from the income that Art. 21 sec. 1 step 131, or 2) income mentioned in Art. 21 sec. 1 point 131. 5. Income from the sale of real estate and property rights mentioned in Art. 10 sec. 1 point 8 lit. ac is not combined with income (income) from other sources.