What are the Different Real Estate Deductions?

It is taxed at 20% of the taxable income. It is not based on sales income. You can deduct the cost of previously buying a house, but you must provide relevant billing information.

Personal income tax

Right!

It is taxed at 20% of the taxable income. It is not based on sales income. You can deduct the cost of previously buying a house, but you must provide relevant billing information.

Chinese name

Personal income tax

Foreign name

no

Taxes

Taxable at 20% of taxable income

Policy document batch number

(Finance and Taxation [1999] No. 278)

2. The land appreciation value of the land value added tax is less than the deduction amount, so there is no need to pay.

The balance after the taxpayer's income from the transfer of real estate minus the deduction of the project amount is the added value.
Real Estate Forum, Decoration Forum, Owners Forum Real estate transfer income: The price determined by the real estate transfer contract shall prevail. Where the real estate transaction price is significantly lower, the levying unit shall make an evaluation with reference to the transaction price of the same real estate market, and determine the real estate transfer income based on the assessed price.
The deducted items include the original price of the real estate, taxes and fees on the transfer

Real Estate Original Price:

Including the original real estate ownership registration price, as well as the stamp tax, deed tax and registration fees and agency fees paid by the transferor when the real estate was originally purchased. Taxes and fees during the transfer: Business tax, stamp duty, urban construction tax, and education surcharges paid by the transferor during this transfer, as well as transaction service fees and agency fees for real estate transfer.
Relevant taxes and fees are valid and valid tax tickets,

1. Notice of the Ministry of Finance and the Ministry of Construction of the State Administration of Taxation on Issues Concerning the Collection of Personal Income Taxes on Individuals' Income from Housing Sales
I. According to the provisions of the Personal Income Tax Law, the income derived from the sale of an individual's own home shall be subject to the personal income tax in accordance with the "Profit Transfer Income" item.
2. The taxable income of individuals selling their own homes shall be determined in accordance with the following principles:
(1) The taxable income of an individual selling his or her own house other than the purchased publicly-owned house shall be determined in accordance with the relevant provisions of the Personal Income Tax Law.
(2) The taxable income of an individual selling purchased public housing is the sales price of the purchased public housing sold by the individual, minus the economically applicable housing price of the housing area standard, the original payment of the house price exceeding the housing area standard, the financial or The balance of the income and income paid by the original property right unit and the reasonable expenses prescribed by the tax law.
Purchased public housing refers to public housing purchased by urban employees in accordance with national and county-level (including county-level) or higher-level people's governments' policies on reform of the urban housing system at cost (or standard) prices.
The price of affordable housing is determined according to the standards set by the local people's government at or above the county level.
(3) The employees shall use the cost price (or standard price) for fund-raising, cooperative housing construction, housing for housing, affordable housing, and demolition and resettlement housing. The taxable income shall be determined by reference to the purchased public housing.
3. In order to encourage individuals to buy a new home, for taxpayers who sell their own homes and plan to repurchase their homes at market prices within one year after the sale of existing homes, the personal income tax payable on the sale of existing homes can be fully determined by the value of the new home purchase Or partly exempt. The specific method is:
(1) The personal income tax payable by an individual on the sale of an existing house shall be paid to the local competent tax authority in the form of a tax deposit before going through the property transfer formalities. When collecting tax payment deposits, tax authorities shall formally issue a "Payment Receipt of the People's Republic of China Tax Payment Deposit" to taxpayers and include them in a special account depository.
(2) If an individual repurchases a house within one year after selling the existing house, the tax guarantee deposit will be refunded accordingly according to the amount of the house purchase. If the purchase amount is greater than or equal to the original home sales (if the original home was purchased public housing, the original home sales should be deducted from the income or income that has been paid to the finance or the original property rights unit according to regulations, the same below), all the refund of the tax deposit; If the amount is less than the sales amount of the original house, the tax deposit is refunded according to the proportion of the purchase amount of the original house sales, and the balance is paid into the national treasury as personal income tax.
(3) If an individual does not re-purchase a house within one year after selling the existing house, all the paid tax deposits are paid into the state treasury as personal income tax.
(4) When applying for the refund of the tax deposit, an individual shall provide the competent tax authority with a valid and valid house sales and purchase contract, and other relevant certification materials required by the competent tax authority. The tax refund deposit may only be refunded after the competent tax authority reviews and confirms it. formalities.
(5) Individuals who sell or purchase a house across administrative regions and who meet the conditions for refunding the tax deposit shall apply to the tax authority in charge of the place where the tax deposit is paid to refund the tax deposit.
4. Income derived from the transfer of personal use for more than 5 years and being the only living house of the family will continue to be exempt from personal income tax.
2. "Notice of the State Administration of Taxation of the Ministry of Finance on Adjusting the Tax Policies of the Housing Leasing Market" (Caishui [2000] No. 125)
3. Individual income tax is levied on the temporary reduction of income obtained by individuals renting houses at a rate of 10%.
This notice will be implemented from January 1, 2001. All tax policies that are inconsistent with the provisions of this notice shall be implemented in accordance with the provisions of this notice.
3. The Reply of the Ministry of Finance and the State Administration of Taxation on the Issue of Exemption of Personal Income Tax on Non-property Owners' Repurchase (Caishui [2003] No. 123)
If one individual owns the property owner registered in the real estate ownership certificate, and within one year after the sale, he repurchases the property at the market price in the name of the property owner's spouse or both of the property owner's spouse. In accordance with the provisions of Article 3 of the Ministry of Finance, State Administration of Taxation and the Ministry of Construction on the Issues Concerning the Collection of Personal Income Taxes on Individuals' Income from Housing Sales (Cai Shui Zi [1999] No. 278), all or part of them shall be exempted from tax; When repurchasing a house at the market price, the personal income tax payable by the property owner on the sale of the house is not tax-exempt.
4. Notice of the State Administration of Taxation on Issues Concerning the Collection of Personal Income Tax on Income from the Transfer of Individual Housing (Guo Shui Fa [2006] No. 108)
Tax authorities at all levels must conscientiously implement the preferential policies for personal income tax on housing transfer. According to the Notice of the Ministry of Finance and the State Administration of Taxation on the Issues Concerning the Collection of Personal Income Taxes on the Income of Individuals Selling Houses (Cai Shui Zi [1999] No. 278), the sale of self-owned houses is planned to be at the market price within one year of the current house sale For taxpayers who repurchase a house, the personal income tax paid on the sale of the existing house is first paid in the form of a tax deposit, and then based on the relationship between the amount of the repurchased house and the sales of the original house, the tax deposit is fully or partially refunded; Income from households that are more than two years old and is the only living house in the family is exempt from personal income tax. It is necessary to implement the above-mentioned preferential policies without fail to ensure the legitimate rights and interests of taxpayers.
5. Notice of the State Administration of Taxation on Strengthening the Tax Administration of Individual Free Gifts and Real Estate Taxes for Real Estate Transactions (Guo Shui Fa [2006] No. 144)
I. Issues on strengthening the tax administration of personal free gifts and real estate (I) Issues on strengthening the tax management of personal free gifts and real estate business taxes 1. Individuals donating real estate to others for free, including inheritance, inheritance disposal, and other free gifts and real estate, are being handled When applying for business tax exemption, taxpayers should submit relevant certification materials to the tax authorities in different situations:
(1) In the case of inheritance of real estate, the heir shall submit the Notarization of Inheritance Right issued by the notary office, the certificate of ownership of the real estate, and the Registration Form of Individual Free Gifts to Real Estate;
(2) Where the testator disposes of real estate, the heir or beneficiary of the testament must submit the notarized testament and notarized testament of inheritance right or notarized acceptance of bequest, real estate ownership certificate, and individual free gift Real Estate Registration Form;
(3) In the case of gifting real estate for free under other circumstances, the grantee shall submit the notary certificate of gift and acceptance of gift certificate by the owner of the property, or the notary certificate of gift contract jointly handled by both parties, and the real estate Certificate of Ownership and Registration Form for Individual Free Gifts and Real Estate.
The above proof must be submitted in original.
The tax authorities shall carefully review the above materials, complete the materials and fill in the correct specifications, sign and stamp the submitted "Registration Form for Personal Free Gifts of Real Estate" and return to the author, keep a copy of the notarized certificate, and go through the business tax exemption procedures.
2. For individuals who donate real estate for free, tax authorities shall not sell invoices to them or issue invoices on their behalf.
(2) On the taxation management of personal free gift real estate deed tax and stamp tax. For personal free gift real estate deed tax, the grantee shall be levied the full amount of the deed tax. When paying the deed tax and stamp tax, the taxpayer must submit a tax stamp that is reviewed and signed by the tax authority. In the "Registration Form for Personal Free Gifts", the tax authority (or other collection authority) shall stamp the taxpayer's deed and stamp duty payment certificate with the seal "Personal Free Gift", sign the "Registration Form for Personal Free Gifts", and sign The form remains. The tax authority should actively communicate and coordinate with the housing management department, and strive for the housing management department to handle the registration of gift property transfer for individuals who have stamped the tax payment vouchers with the stamp of "individual free gift". Individuals with tax-paying vouchers are not allowed to go through the registration formalities for the transfer of gifted property rights.