According to the policy, taxpayers who sell their own houses and re-purchase houses in the market within 1 year after the sale of their existing houses will be given preferential tax refund for the personal income tax paid for the sale of their existing houses. Among them, if the newly purchased housing amount is greater than or equal to the current housing transfer amount, all the paid personal income tax will be refunded; If the amount of newly purchased housing is less than the transfer amount of existing housing, the personal income tax paid for the sale of existing housing will be refunded according to the proportion of newly purchased housing to the transfer amount of existing housing.

The current housing transfer amount is the market transaction price of housing transfer. If the newly purchased house is a new house, the purchase amount shall be the transaction price indicated in the purchase contract signed by the taxpayer in the housing and urban-rural construction department; If the newly purchased house is a second-hand house, the purchase amount shall be the transaction price of the house.

I. Taxpayers who enjoy the prescribed preferential policies shall meet the following conditions at the same time:

1. The houses sold and repurchased by taxpayers should be in the same city. The scope of the same city refers to all administrative divisions under the jurisdiction of the same municipality, sub-provincial cities and prefecture-level cities (regions, States and leagues).

2. Taxpayers who sell their own houses must have a direct relationship with the newly purchased houses and should be the owners or one of the owners of the newly purchased houses.

According to the regulations, taxpayers or their spouses can choose to deduct the interest expense of the first home loan from the taxpayer's purchase of housing in China at a fixed rate of 1 000 yuan per month. If the house is purchased by both husband and wife, then only one party can enjoy the standard of tax refund.

Legal basis:

Interim Measures for Special Additional Deduction of Individual Income Tax

Article 14

If taxpayers or their spouses use individual housing loans from commercial banks or housing accumulation funds alone or jointly to purchase housing for themselves or their spouses in China, the interest expenses incurred in the first housing loan shall be deducted according to the standard quota of 1 000 yuan per month in the year when the loan interest actually occurred, and the maximum deduction period shall not exceed 240 months. Taxpayers can only enjoy a first home loan interest deduction.

The term "first home loan" as mentioned in these Measures refers to the housing loan that enjoys the interest rate of the first home loan when buying a house.

Article 15

As agreed by both husband and wife, one of them can choose to deduct, and the specific deduction method cannot be changed within a tax year.

For the first set of housing loans that occur when the husband and wife buy houses separately before marriage, they can choose to buy 1 house after marriage, and the buyer will deduct it according to the deduction standard of 100%, or the husband and wife will deduct it according to the deduction standard of 50%, and the specific deduction method cannot be changed within one tax year.