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How to save second-hand housing tax savings

Time: 2016-02-01         Source: Financial 360 finishing         Author: howie

The purchase of second-hand housing, in addition to the need to pay the taxes and fees stipulated by the state, may also involve the intermediary fees, transfer fees, notary fees and other expenses. Accumulation of these costs is a big expense. Can you save money on taxes and fees?

First look at what taxes are involved in second-hand housing transactions

Deed tax

In line with the residential building construction volume rate of 1.0 (inclusive) or more, a single set of building area of ​​140 (inclusive) square meters (up 16.7% on the basis of 120 square meters), the actual transaction price is lower than the same level of land on the average transaction price of the house The following conditions, such as 1.2 times, are considered as ordinary residences, and 1.5% of the housing transaction price or evaluation price is levied. Otherwise, press 3%.

  Deed tax under the New Deal:

Ordinary house: 90 square meters or less: 1%

90-140 square meters: 1.5%

More than 140 square meters or non-standard houses: 3%, commercial housing or company property rights: 3%

  Personal Income Tax

Within 2 years of ordinary residence: {sales income - the total purchase price - (business tax + urban construction tax + education surcharge + stamp duty)} × 20%;

Ordinary house with more than 2 years (inclusive) or less than 5 years: (Sales income - total purchase price - stamp tax) × 20%.

The sale of public housing: within 5 years, (sales of housing revenue - economic housing prices - land transfer fees - reasonable expenses) × 20%, of which economic housing funds = construction area × 4,000 yuan / square meter, land transfer fees = 1560 yuan / square m × 1% × construction area. A tax that is not the only housing in the family is levied at 1% of the price.

  Transaction Fees

3 yuan / square meter × construction area

  Stamp duty

Total housing turnover × 0.05%

Starting from 2009, the State temporarily exempts residential stamp duty

  Business tax

Within 2 years of housing: total housing evaluation × 5.6%;

There is no business tax for ordinary residences of 2 years or more.

On March 30, 2015, the Ministry of Finance and the State Administration of Taxation issued the Notice on Adjusting the Business Tax Policy for the Transfer of Individual Housing (Cai Shui [2015] No. 39) stipulates that: “If an individual will purchase a house less than two years old for sale, the full amount will be collected. Business tax; if an individual purchases non-ordinary housing for more than 2 years (including 2 years) for external sales, the business tax shall be levied on the basis of the difference between the sales income minus the purchase price of the house; the individual will purchase more than 2 years (including 2 years). If the housing is sold externally, business tax shall be exempted."

  Urban maintenance and construction tax

7% of business tax, which is paid when the seller needs to pay VAT and business tax, and is calculated according to the value-added tax and business tax paid. If there is no need to pay VAT or business tax, this tax is not required.

  Additional education fee

3% of business tax. The tax is paid when the seller needs to pay VAT and business tax, and is calculated according to the value added tax and sales tax. If there is no need to pay VAT or business tax, this tax is not required.

  Land appreciation tax

When ordinary houses are transferred, they are temporarily exempted from land value-added tax (ordinary residential exemption)

For the transfer of non-ordinary houses, those who have resided for five years or more are exempted from the land value-added tax (exemption for 5 years or more).

For a residence less than five years after the completion of three years, half of the land value-added tax shall be levied (total housing turnover × 0.25%)

For those who have lived for less than three years, land value-added tax shall be calculated according to regulations (total housing turnover × 0.5%)

  House ownership registration fee

80 yuan, with a total number of licenses: 20 yuan

  Sales contract notary fees

When a contract for sale and purchase is required to be notarized, the total turnover of the house shall be 0.3%

It is also a headache for so many taxes and fees to be cut down.

What are the methods of saving taxes?

I. Business Tax: Choose a House More Than 2 Years

According to the latest “Notice on Adjusting the Business Tax Policy for the Transfer of Individual Housing” in 2015, individuals will be exempted from business tax if they purchase ordinary houses that have been purchased for more than 2 years (including 2 years); individuals will purchase more than 2 years (including 2 years). For non-ordinary housing sales, sales tax shall be levied on the basis of the difference between the sales income minus the purchase price of the house and the individual who purchases the housing for less than two years. The business tax shall be levied in full.

Therefore, according to the stipulated contents, the purchase tax for ordinary houses purchased for more than 2 years is the largest. However, business tax relief needs to pay attention to two aspects:

1, housing purchase time standards

When an individual purchases a house and submits a tax return, and simultaneously issues a certificate of property title and a tax payment certificate, and the time indicated by the two is inconsistent, the time for purchasing the house shall be determined in accordance with the principle of "first and foremost";

The act of personal sales of the housing obtained from non-purchased forms such as donations, inheritance, divorce, etc., is determined according to the purchase time of the property prior to the division of the grant, inheritance, and divorce property;

The total amount of housing purchased under the National Housing Reform Policy determines the time of purchase in accordance with the principle of “孰先”, based on the effective date of the purchase contract, the date of issuance of the receipt of the housing payment, or the time specified on the title certificate of the house. The second is the standard of distinction between ordinary residential and non-ordinary residential.

2. Standards for distinguishing ordinary and non-ordinary houses

According to the relevant regulations of the country, housing that enjoys preferential policies should, in principle, satisfy the following conditions at the same time: The building plot ratio of residential quarters is above 1.0;

A single set of construction area is less than 120 square meters, the actual transaction price is lower than the average transaction price of the housing on the land of the same level is less than 1.2 times;

All provinces, autonomous regions, and municipalities directly under the Central Government shall formulate specific standards for ordinary housing that enjoy preferential policies in this area according to the actual situation, allowing single sets of construction area and price standards to float properly, but the proportion of upward floating shall not exceed 20% of the above-mentioned standards.

Although the standards for determining ordinary houses vary from place to place, most of them use a single set of housing with a floor area of ​​no more than 144 square meters as ordinary housing.

Second, the first home buyers issued proof of no room

The identification of first-time home buyers is based on the relevant regulations: If individuals purchase ordinary homes, and the home belongs to the family (the scope of membership includes home buyers, spouses, and minor children), only half of the deed tax will be levied. If an individual purchases an ordinary house of 90 square meters or less and the house belongs to the family's only housing, deduction of the deed tax shall be made at a rate of 1%.

There are also regulations stating that "the only family living room" refers to taxpayers in the same province, autonomous region, or municipality directly under the Central Government (there are spouses for both husband and wife) only own one set of housing.

Individuals who purchase ordinary houses for the first time may apply to the real estate department for registration of the family house registration records and issue a certificate without housing. If the local area does not have the query conditions and cannot provide the results of the family house registration inquiry, it may submit that the first purchase is ordinary. The written letter of guarantee for the housing guarantees a certain amount of deed tax benefits.

Third, safekeeping of relevant valid credentials

According to relevant regulations, individual income tax is exempted for personal gains derived from personal use for more than five years and is the only living room for the family. However, it should be noted that the time for an individual to transfer a house is based on the time indicated on the sales invoice.

Taxpayers are exempted from personal income tax if they meet the two conditions of self-use for more than five years and the only family living room. If the above policies are not met, individual income tax shall be paid on the basis of “acquisition of property transfer”. Specifically, there are two types of collection methods, namely, inspection or exemption. If the taxpayer can provide a complete and accurate proof of the original value of the house, it shall be subject to inspection and expropriation, otherwise the approved collection shall apply.

Fourth, the separation of production tax has preferential

Family separation and production is the form of transfer of family property. Family separation and production refers to the way in which the family members divide the family’s common property according to the agreed criteria according to the agreed-upon agreement, and clarify the behavior of each of the co-owners.

According to the regulations, the division of property rights through the method of divorce and production analysis is the disposal of joint common property by husband and wife. Individuals who handle property transfer formalities due to divorce do not levy personal income tax.

5. Deed tax on housing exchange

Housing exchange is the act of exchanging houses between house owners. According to Article 10 of the “Provisional Regulations of the People’s Republic of China on Deed Taxes”, where land and house ownership are exchanged, if the exchange price is equal, the deed tax shall be exempted; if the exchange price is not equal, more money, physical goods, intangible assets or other economic benefits shall be delivered. One party collects the deed tax.

For example: A and B have their own needs for housing. A has a suite with a price of 800,000, and B has a suite with a price of 1 million. Both parties have no mortgage and mortgage. If Party A and Party B reach an agreement, Party A will pay B 200,000 yuan of housing money and both parties will exchange houses. Then both A and B enjoy the benefits of deed tax, A only needs to pay 20 × 3% = 0.6 million deed tax, B does not need to pay deed tax. If you follow the method of selling first and then buying, A will need to pay a deed tax of 100 × 3% = 30,000 yuan, B must pay a deed tax of 80 × 3% = 24,000 yuan (without deliberation of tax deductions).

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