property tax when selling

property tax when selling

This government had removed the option, to every vendor, to CHOOSE between capital gains Tax OR final withholding tax..At present its final withholding tax only without the possibility able to claim any expenses (against a fiscal receipt) on that property. This had angered every vendor. My proposal is to give every vendor the right to choose the most convenient tax system.

Points

The present system is very unfair. One can end up paying tax even if one makes a loss upon sale. I can understand the need for a change due to abuse but there should be a distinction between property developers/traders and people who sell their personal property.

More of a clarification. As it is the tax is not on the profit, be it gross or net, but on the whole price. This is ridiculous because there are cases where one is under pressure to sell, and may finish with a ridiculous profit (I myself had a case of 200 liri net profit on 40,000 liri), or even a small loss. If this is an option, then the net profit is to be added to other income (include wages) and taxed accordingly. In case of a loss it's a bit tricky to decrease from other earnings.

Let me clarify the present situation. If you buy a property at 200k and after 6 years you sell it at 250k, you pay 8% final witholding tax on the 250k = 20k. After 10years you pay 10%.  The best choice would be the  capital gains tax at 35% on the profit after deducting the expenses in upgrading the property  (against receipt), stamp duty and notarial fees when buying. If such expenses sum up to 30k for example  (very reasonable), 35% is paid on the 20k profit = €7k.

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