Comments on: Taxes on real estate transactions http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/ Properties in the paradise island Tue, 23 Feb 2010 10:12:22 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Julia de Chavez http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-9167 Julia de Chavez Tue, 09 Feb 2010 17:16:26 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-9167 Re: 6% capital gains tax for residential owners, it's based on gross selling price or zonal values whichever is higher. How come the government did not even consider the property owner's costs in buying his lot and in building his house? The purchase price is not all gains for the owner. Let's say he's selling his house and lot at P2.0M but he spent P1.0M in buying lot and in onstructing his house. Is it not just fair that the capital gains tax should be based on the gain of P1.0M? His house is not a mushroom that just erupted on his lot. Cannot the government review this capital gains tax regulations and help ease the burden of the small property owners? I wonder if somebody could bring this to the goivernment's attention. Thank you. Re: 6% capital gains tax for residential owners, it’s based on gross selling price or zonal values whichever is higher. How come the government did not even consider the property owner’s costs in buying his lot and in building his house? The purchase price is not all gains for the owner. Let’s say he’s selling his house and lot at P2.0M but he spent P1.0M in buying lot and in onstructing his house. Is it not just fair that the capital gains tax should be based on the gain of P1.0M? His house is not a mushroom that just erupted on his lot. Cannot the government review this capital gains tax regulations and help ease the burden of the small property owners? I wonder if somebody could bring this to the goivernment’s attention. Thank you.

]]> By: Joseph Reyes http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-8564 Joseph Reyes Wed, 20 Jan 2010 05:54:20 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-8564 How do you compute the capital gains tax in the case of a residential condominium if the price per deed of sale is P1.6M? How is the value of the building improvement determined and who determines it? How can you apply for the exemption to capital gains tax as mentioned below? Do we write a letter to the BIR informing them of the intention? Whom do we submit it to and what are the necessary supporting documents required? "A person selling his principal residence may be exempted from paying capital gains tax. To quality for the exemption, the seller must be a natural person and will use the proceeds of the sale to acquire a new home. He must also notify the Bureau of Internal Revenue (BIR) within 30 days from the sale of his property of his intention to avail of the exemption. The privilege can be availed of once every 10 years." I am about to sell my residential condo to buy a new home and would appreciate and advise. Regards, Joseph How do you compute the capital gains tax in the case of a residential condominium if the price per deed of sale is P1.6M? How is the value of the building improvement determined and who determines it?

How can you apply for the exemption to capital gains tax as mentioned below? Do we write a letter to the BIR informing them of the intention? Whom do we submit it to and what are the necessary supporting documents required?

“A person selling his principal residence may be exempted from paying capital gains tax. To quality for the exemption, the seller must be a natural person and will use the proceeds of the sale to acquire a new home. He must also notify the Bureau of Internal Revenue (BIR) within 30 days from the sale of his property of his intention to avail of the exemption. The privilege can be availed of once every 10 years.”

I am about to sell my residential condo to buy a new home and would appreciate and advise.

Regards,
Joseph

]]> By: Tanya http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-7345 Tanya Sun, 13 Dec 2009 11:23:53 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-7345 thank you for the computation. it is a great help to me. thank you for the computation. it is a great help to me.

]]> By: yvaine http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-1781 yvaine Wed, 26 Nov 2008 23:00:41 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-1781 Hi! My father bought a land some 26 years ago. He finished paying after 5 years, but forgot to transfer the land to his name. We are now trying to transfer the land to his name, but we have to pay neglected taxes for the past 23 years. We had a BIR employee compute the back taxes, and it amounted to an astounding 127k! Can you help me with the computation? The BIR employee would not elaborate on how she came up with the values. Thank you. Hi! My father bought a land some 26 years ago. He finished paying after 5 years, but forgot to transfer the land to his name.

We are now trying to transfer the land to his name, but we have to pay neglected taxes for the past 23 years. We had a BIR employee compute the back taxes, and it amounted to an astounding 127k!

Can you help me with the computation? The BIR employee would not elaborate on how she came up with the values. Thank you.

]]> By: elaine http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-930 elaine Wed, 16 Jul 2008 15:38:58 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-930 Dante: In foreclosure sales the reason why buyer in foreclosure pays capital gains and doc stamp only after foreclosure is because the mortgagor has a period of one year erfrom registration of sale to redeem foreclosed property. Right of buyer in foreclosure is inchoate before such expiration. Upon expiration, and without exercise of redemption, buyer in foreclosure's right becomes complete. He will then have to pay CGT and DST. No need for jurisprudence. Check out Act 3135 on EJF or Rule 68 of Rules. Hope its helpful. Dante: In foreclosure sales the reason why buyer in foreclosure pays capital gains and doc stamp only after foreclosure is because the mortgagor has a period of one year erfrom registration of sale to redeem foreclosed property. Right of buyer in foreclosure is inchoate before such expiration. Upon expiration, and without exercise of redemption, buyer in foreclosure’s right becomes complete. He will then have to pay CGT and DST. No need for jurisprudence. Check out Act 3135 on EJF or Rule 68 of Rules.

Hope its helpful.

]]> By: elaine http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-929 elaine Wed, 16 Jul 2008 15:33:30 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-929 Kathlyn and Dante: As a general rule, doc stamps are paid for by the BUYER. Unless there's a stipulation that SELLER pays it. Kathlyn and Dante: As a general rule, doc stamps are paid for by the BUYER. Unless there’s a stipulation that SELLER pays it.

]]> By: candy http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-899 candy Tue, 08 Jul 2008 00:57:18 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-899 I bought a house and lot situated in Bauan, Batangas last Oct 2005. how much (or percentage of penalty) would it cost me if I am gonna pay or settle the capital gains and docs stamps this year? Is it possible or better to settle the Cap gains and Docs stamps first? coz I am not so busy these past 3 years (no source of income and on medication). Thank You very much. I bought a house and lot situated in Bauan, Batangas last Oct 2005. how much (or percentage of penalty) would it cost me if I am gonna pay or settle the capital gains and docs stamps this year? Is it possible or better to settle the Cap gains and Docs stamps first? coz I am not so busy these past 3 years (no source of income and on medication).

Thank You very much.

]]> By: alvinpornasdoro http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-829 alvinpornasdoro Mon, 30 Jun 2008 08:14:55 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-829 in foreclosure sale, what is the reason behind why capital gains tax and documentary stamp tax be paid after redemption period? what specific law on taxation governed, jurisprudence of the supreme court. in foreclosure sale, what is the reason behind why capital gains tax and documentary stamp tax be paid after redemption period? what specific law on taxation governed, jurisprudence of the supreme court.

]]> By: dante http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-805 dante Thu, 26 Jun 2008 01:39:51 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-805 Ask ko lang po who shoulders docs stamps in sale of real property? tnx Ask ko lang po who shoulders docs stamps in sale of real property? tnx

]]> By: nicekitty http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/comment-page-1/#comment-707 nicekitty Sat, 19 Apr 2008 14:29:50 +0000 http://realestate.cebunetwork.com/15/taxes-on-real-estate-transactions/#comment-707 Nice article. Very informative. Just a suggestion, I think this article might be improved (and thus get more credence) by paraphrasing or quoting a section of the real estate tax laws. It could had also had some attached references or included a document links. =) Nice article. Very informative. Just a suggestion, I think this article might be improved (and thus get more credence) by paraphrasing or quoting a section of the real estate tax laws. It could had also had some attached references or included a document links. =)

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