Capital Gain on real estate sale before 5 years

Capital Gain on real estate sale before 5 years real estate

Capital Gain on real estate sale before 5 years

Real estate capital gain refers to any gain realized by resale before the expiry of the 5 years a property at a price higher than the initial purchase price: the Tax Office considers it a different additional income and therefore tax the real estate gain for income tax purposes.

The tax payer who has to pay the tax on real estate capital gains can calculate the capital gain and insert the same under the heading “other income” in the tax return, and then pay the relevant IRPEF tax rate;

Or you can ask at the time of notarial deed to apply a fixed substitute tax of 20%, to be paid at the same time as the deed directly to the notary, who will pay by electronic means once the deed is registered. The calculation of the capital gain is determined by the difference between the sale value and the initial purchase value to which all the various costs incurred for both purchase (taxes, notary, agency fees, etc.) and any restructuring costs are added: this calculation must be prepared on a specific model of the Revenue Agency and, duly completed, delivered to the notary

Real estate capital gains are not due in the following cases:

– if the property is sold free of charge
– if the property that is sold comes from an inheritance
– if the property is sold after a period of 5 years from the date of purchase
– if you buy a property with a first-home facility and for most of the period between the purchase and sale the accommodation is used as a main residence
– if property purchased with first-home facilitation was used as a main residence for most of the period (half plus one day) between purchase and sale