From September 1, the house will be transferred to relatives without income tax.
As we all know, there are generally three ways to inherit real estate, one is gift, the other is inheritance, and the third is sale. However, with the joint release of State Taxation Administration of The People's Republic of China and the Ministry of Finance, in the Announcement on Individual Income Taxable Income Items Obtained by Individuals, which was officially implemented on September 1, some inheritance methods have changed. The announcement stipulates that the gift and transfer of real estate are tax-free, but many people have doubts. What kind of gift and transfer of real estate is the most cost-effective way in the future? Let's take a look.
According to the Announcement on Individual Income Taxable Items Obtained by Individuals, providing guarantee for others or units to obtain income needs to be calculated as "accidental income" items to pay personal income tax. When the owner decides to give the house to others for free, the donee still has to pay personal income tax.
The announcement also said that if the house is given to the close relatives of the property owner, it can be exempted from personal income tax, including children, parents, brothers and sisters, grandchildren and so on. In addition, there is another case where personal income tax is not paid. Personal income tax is not levied if the property owner gives the house to his direct supporter or supporter free of charge.
However, if the old man in the family gives the house to his children, but the children want to sell the house, and the property right is less than 5 years, and it is the only residence in the family, then in this case, 20% personal income tax is required.
New house transfer policy, September 1
Compared with the current deed tax policy, the new Deed Tax Law adds two cases of deed tax exemption, that is, the transfer between husband and wife and the inheritance of legal heirs can be exempted from deed tax.
According to the provisions of the deed tax law of People's Republic of China (PRC), in any of the following circumstances, the deed tax shall be exempted:
1. The first one
During the marriage relationship, the change of land and house ownership between husband and wife is exempt from deed tax, and the actual deed tax law also stipulates that the transfer of real estate between husband and wife is also exempt from taxes and fees. Bian Xiao's friend's parents divorced, and her father transferred the house to her mother's name, but she didn't pay any transfer fee at that time.
2. The second kind
Land and house ownership acquired by legal heirs through inheritance shall be exempted from deed tax. That is to say, after your parents died, you didn't make a will, but you are the legal heir, and you don't have to pay the transfer fee for inheriting your parents' property. The current deed tax law requires that a will should be handed over to transfer fees, and an intestate inheritance of parents' property should be handed over to transfer fees.
In addition, the deed tax rate from September 1 is 3% to 5%.
From September 1, the house is transferred to relatives without income tax, and all the contents of the new house transfer policy in September 1 are compiled here for you.