Due to some inaccuracies in buying and selling real estate, investors may have to pay more taxes than they should. Those who sell real estate for a profit may be required to pay taxes on the profits made.
If you sell your property before the expiry of 5 years, you may have to pay real estate tax . You may also pay extra tax if you have shown the title deed as low. In general, less than the normal value of the property to pay less than the title deed mortar, may result in the payment of more taxes.
Real Estate Value Increase Income Tax
It is a type of tax that arises as a result of making a profit above the determined amount after the sale of the property. In other words, it is the tax paid for the profit obtained by the sale of the house purchased within 5 years . In order to clarify the situation of overpayment due to the title deed fee, it is the tax that arises from showing the title deed fee less than necessary when real estate is purchased and showing it with real value when selling.
This will result in excessive tax payment. This low-fee statement, which is made without looking forward to buying a house, can cause various problems, such as paying excessive taxes in the future.
Excess Tax Formation
For example ; You report a residence you have purchased to the title deed with a low fee, and the value of this house increases after two to three years. Calculations are made on these figures reported to the land registry. Profit rates are determined according to the figures given.
A certain tax amount is calculated based on this data. However, when you want to sell the house, different tax rates arise when calculations are made considering the real values. In this way, the amount of tax is much more. In this case, you may pay more taxes due to land registry fees. When buying housing, the low value of the title deed leads to the payment of more taxes. He can suffer losses when he wants to make a profit.
What should be done by those who show low title deed?
By showing the deed to be lower than normal, residential areas may submit a petition of regret in order to avoid these problems related to the deed mortar when selling the house. In this way, they can increase the deed value. You can file a regret with the tax office.