The contract of the future contract is a common tool even when selling an apartment. However, due to this, you can get into sweat with income tax exemption. Remember that you have to pass the two-year time test between buying and selling, otherwise you will have to pay.

The contract of the future contract is a very common and frequent tool that will be used in the sale of real estate, members first in the company, business floors, but also valuable securities. Unfortunately, this type of contract can significantly affect the exemption of personal income tax.

According to paragraph 4, paragraph 1, psm. and the Income Tax Act, income from the sale of the following real estate is exempt from personal income tax:

  • family house,
  • apartment (or apartment including a share on the common parts of the house or a co-ownership share on this property),
  • land, only related to the apartment or house.

In these cases, a two-year time test between purchase and sale is paid, but provided that the seller is living in the property for at least two years immediately before the sale.

A similar procedure is followed in the case where the seller should have lived in one of the said properties for a period of less than two years, but the funds obtained from the sale will be used to re-satisfy the housing needs. Such a fee must include income from the sale of handcuffs to satisfy housing needs no later than the end of the following year, in order to be exempt from tax obligations.

The contract of the future will break the time test regardless of when the pension is transferred

For some reason, you will find a suitable sale of your apartment or family house, and when consulting with a tax expert, find out that you do not pass the mentioned two-year time test. A very interesting buyer will appear and you would not want to drink about it.

On the one hand, due to the time test, you do not have to foreclose the property immediately, or you would not pass the exemption time test and you would have to tax the income from the sale. On the other hand, you do not want to lose a solvent buyer who is willing to repay the transfer.

Logically, there is a contract for a future purchase contract, which you conclude with the buyer. The law, or its deposit, is based on the fact that the income from the contract of the future concluded within two years from the acquisition of real estate is taxable income.

In this city, it is very important to emphasize that the salary is not only for contracts for future contracts with the castle purchase prices two not after two years from the acquisition of real estate, but also for shops when the castle occurs and after a two-year time test.

This is very essential for sellers and their personal tax fulfillment. Everyone must be aware that the signing of such a contract during the time test may provide two assurances to the buyer and the value of the sale price, but it has a negative tax otherwise, regardless of the date of payment of the purchase price. This is one of the most common mistakes that taxpayers make in trying to reach liberation.

For other real estate, five years of time testing, but the methodology remains the same

Not all properties fall under the two-year time test. Only relatively real estate intended for living belongs to this relatively short exemption period, in which the fee should have a demonstrable residence (salary also for relatives in the pm line) immediately before the sale.

If the condition “living” does not meet the fee (for example, it is a property intended for recreation, etc.), the income tax bill works with a five-time test. As for future contracts, the procedure is the same. If the contract is concluded before the end of the test, then regardless of the moment of financial settlement, it is a fact that the test is not actually completed, and thus the situation does not justify the exemption.

As is the case with the transfer of Member States to the country, and gave the information, ask at

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