Know About General Tax Payment On The Sale Of Your Property

General tax payment on the sale of your property

If you are going to sell your property you have to know that not everything you get for the sale is going to be a profit. It is important that sales taxes are distinguished from those paid for the purchase of a home.

House sales tax

The value of the tax is obtained from the difference between the sale price and the purchase price of the house, updated by a coefficient stipulated according to the year of purchase of the property. The percentage of tax depends on the amount of equity gain.

Municipal goodwill

It must be paid in the municipality to which the house belongs within a period of 30 business days after the signing of the sale. Until this year, this tax was paid for the value of the property, not for what was earned or lost on the sale.

Selling expenses

In some cases when a property is put up for sale, the burdens of mortgage, loan, or foreclosure must be settled by the seller. Usually this settlement consists of the cancellation of such charges before signing a notary, but there is the option of subrogating them to the buyer whenever the creditor entities agree. The net amount of the sale in this case would be the difference between the price of the house and the charges that exist.

Notary fees

For any transaction it is necessary to go to a notary, who will grant the deed of sale. For this reason, a fee set by the regulations must be paid, but may vary according to the value of the action. The seller will decide which notary to go, and it will always be him who will pay the fees.

Other expenses

Although it is not a direct expense, you also have to take into account the Real Property Tax. This is a municipal tax payable by all those who own a property. The principle must be paid who owns the apartment at the time of payment.

By: Shailaja K