Capital Gain Tax

[Starmix]

When we operate a business, and if it involves selling property online and both seller and buyer agrees on the pricing by square meter or by hectare, the question now is who will shoulder the payment of the capital gain tax. Will it be the seller or the buyer? In my opinion as a licenced broker the two parties may agree before hand on who would pay the tax. If the value of the property is reduced it's the buyer to pay the capital gain tax to be executed by a lawyer, and if the price isn't discounted it's the seller to pay the capital gain tax.

 

[Suba]

Capital gains are obtained from owning property, so income tax on property should be imposed on the owner or seller, the seller is also required to report taxes to the tax office on personal income. The Tax Office does not care who pays the tax due on the sale of the property, so it can be negotiated with the buyer whether he is willing to pay tax on capital gains. If you sell through a broker, the broker will deduct the amount of money you should receive, but it may be reimbursed by the buyer.

 

[Starmix]

Capital gains are obtained from owning property, so income tax on property should be imposed on the owner or seller, the seller is also required to report taxes to the tax office on personal income. The Tax Office does not care who pays the tax due on the sale of the property, so it can be negotiated with the buyer whether he is willing to pay tax on capital gains. If you sell through a broker, the broker will deduct the amount of money you should receive, but it may be reimbursed by the buyer.

The seller and the buyer can both decide on who shall pay the capital gain tax as based on my experience selling properties to clients. Usually, the payor of the capital gain tax is the owner of the property.

 

[Suba]

The seller and the buyer can both decide on who shall pay the capital gain tax as based on my experience selling properties to clients. Usually, the payor of the capital gain tax is the owner of the property.

You're right, the obligation to pay capital gains tax actually lies with the property owner or seller, and usually it will be deducted directly by the broker, so that the proceeds from the sale will be reduced, but there's nothing wrong if the buyer is willing to compensate for the capital gains tax.

 

[Starmix]

You're right, the obligation to pay capital gains tax actually lies with the property owner or seller, and usually it will be deducted directly by the broker, so that the proceeds from the sale will be reduced, but there's nothing wrong if the buyer is willing to compensate for the capital gains tax.

I experienced it many times when I was able to sell properties like a beach. That was an awesome experience. I got a huge commission and the buyer was an American and the beach owner was my cousin. The buyer offered to pay the capital gain tax.

 

[Augusta]

Yes I want to believe that one party should always pay the gain tax, Yes if the value of the property is reduced the buyer should take up the payment the capital gain tax and vice versa but the tax should be paid.

 

[Starmix]

Capital Gain tax is supposed to shoulder by the property owner and in case the buyer favors to pay it, it's their personal agreement and no-one can contest it because it's agreed upon by the two parties the seller and buyer.

 

[kidi40]

When we operate a business, and if it involves selling property online and both seller and buyer agrees on the pricing by square meter or by hectare, the question now is who will shoulder the payment of the capital gain tax. Will it be the seller or the buyer? In my opinion as a licenced broker the two parties may agree before hand on who would pay the tax. If the value of the property is reduced it's the buyer to pay the capital gain tax to be executed by a lawyer, and if the price isn't discounted it's the seller to pay the capital gain tax.

Let's think this way, what about both the two parties accepting to pay the capital gain tax, I think it will be easy to both parties to corporate this way.

 

[Starmix]

Let's think this way, what about both the two parties accepting to pay the capital gain tax, I think it will be easy to both parties to corporate this way.

The usual procedure is for the land or property owner to pay the capital gain tax. because he is the seller, however the seller may ask for it from the buyer if he insists to buy with a discount.

 

[Suba]

In my country there are no capital gains for land or property, but buyers will be subject to value added tax while sellers will be subject to income tax. In my opinion, it would be too difficult to calculate the capital gain if the land was acquired from an inheritance that has been around for decades, what was the purchase value at that time and what is the current selling value.

 

[Starmix]

Capital gains tax here is part of taxation It is an automatic knowledge of the sellers. They are going to face a lawyer for a transaction like this. It is stipulated in the deed of sale.

 

[Suba]

My question is how to calculate capital gains from land and property that has been around for a very long time, so that the purchase price at that time was also very, very cheap, compared to current prices, whereas according to GAAP which is used as an accounting standard in the world, capital gain is the difference between the selling price minus the purchase price. . And of course capital gains taxes on land and property will be very high.

 

[Starmix]

The capital gain tax here varies according to the price of the property which is 6 % capital gains tax based on either the property's selling price or its zonal value, whichever is highest.

 

[Augusta]

Yesh it is good to always find out the tax on it and if it is good enough for you then you adopt it

 

[Starmix]

Capital gains tax will be shouldered by the owner of the land property not the buyer however upon request and plea of the property to let the buyer pay the capital gain tax it may be possible according to the appraised value of the property like land.