Those who sell the house they bought before 5 years and those who sell before 5 years must submit a declaration for the real estate capital gains tax until March 31. However, millions of homeowners who misrepresent in order to pay low taxes are also subject to heavy fines.
İbrahim Çolak, an expert in the matter, noting that the tax on the increase in real estate value is determined based on the actual income from the house, “According to Article 80 of the Income Tax Law , with the exception of houses held by inheritance and gift, within 5 years from the date of purchase.If sold, it is subject to capital gains tax.Homeowners must submit a declaration to the tax authority (GİB) by the end of this month. However, some real estate owners may make false declarations to reduce the tax on the increase in real estate value. When this situation is detected, the owners real estate are required to pay the missing taxes, while facing a large number of penalties.
HOUSING ALSO TAKES INTO ACCOUNT THE RISKS FOR OWNERS
Stating that the low selling price of real estate poses a risk for home buyers, İbrahim Çolak said: “When the home buyers put the property up for sale later, they may have to pay tax on the higher income. Those who show a low value when buying their home seem to have made a profit due to the high difference when they sell their homes at their true value within 5 years. However, due to the high profit, the tax amounts paid are also multiplied. Recently, deterrent fines against under-declaration of sale price and low title deed fees have started to pay off. The number of illegal declarations is gradually decreasing,” he said.
YOU CAN BE FROM 50,000 TL
Çolak, in this regard, said: “If the owner of the house, who declared the value of the house he bought for 450,000 TL in January 2020, as 250,000 TL in the deed, when he puts his house up for sale in December 2021, if he declares the real value of the house which is 700,000 TL, then 50,000 may have to pay a value increase gains tax close to TL. the actual price was declared as 450,000 TL when buying the house, only an additional amount of title deed fee would be paid.In order not to encounter such situations, it is absolutely necessary to declare the title fee of ownership on the purchase price of the house.
HOW IS PROPERTY VALUE TAX INCREASED?
İbrahim Çolak, who said that real income is taken into account in determining real estate value increase gains tax, clarified the issue with the following words:
“By calculating the difference between the purchase and sale value of the house, which is adjusted for inflation, we find the real income obtained independently of inflation. The amount of the exemption announced each year, the right of ownership paid at the time of the purchase and, in the event of recourse to a mortgage, the sum of the interests paid until the sale are deducted from this income. Thus, the “taxable amount” is found. Tax brackets are applied to this amount. (ADH)
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