In general, you must have held it for at least three years to receive a special deduction for long-term real estate ownership. The minimum deduction rate of 2% per year is 6%, and up to 30% if you have a maximum of 15 years or more can be applied. In the case of a single householder, you must also hold it for at least three years, and if it is 4% per year, from 12% to up to 10 years, you can apply a 40% deduction, and if you receive 4% and up to 80% depending on the period of residence, you can deduct up to 80%. However, in order to receive a maximum 80% deduction, it must be one house per household at the time of transfer and the period of residence must be met for at least two years.If long-time homeowners are planning to sell or are about to sign a real estate contract, we recommend that you take a close look at the information on the special deduction for long-term real estate ownership, consult with an expert on how to reduce the transfer tax, and then sign a sale contract.A Study on the Tax Reduction of Special Deductions for Long-Term Ownership of Real EstateIf you own real estate such as a building or land, it is recommended to understand and learn a few things so that you can save tax before the sale contract is made. However, many people find it difficult because the law changes so often. In today’s posting, we will learn how to apply the special deduction for long-term real estate ownership as of October 25, 2023.If so, what is the special deduction for long-term real estate ownership? According to the Income Tax Act, it is a system that calculates capital gains tax by deducting a certain amount in the process of calculating the amount of capital gains for land and buildings with a holding period of more than three years. The longer the period of holding real estate, the more deductions are given, so the deduction rate differs depending on how long the holding period is. In the case of one house for one household, it is tax-free if you hold it for two years without a transaction price exceeding 1.2 billion. If the transaction price exceeds 1.2 billion or if you are a multi-homeowner, you should closely examine the above matters.
