Just got a house from someone or planning to sell your home? Lots of folks stress about facing a huge wealth tax after selling property, but that’s not always how it goes. Sometimes, the law cuts you some slack and lets you avoid paying those taxes, depending on your case. Picture finding a hidden key that helps you save money when selling your place. This message explains when taxes might not be due, so stick around if you want to hold on to more money.

SELLING THE PROPERTY AFTER 5 YEARS

In a situation where you want to sell your apartment, you may not have to pay wealth tax. However, this is a very important time, namely 5 tax years. If you bought an apartment in 2013, you can sell it without enrichment tax after years: 2014, 2015, 2016, 2017 and 2018. So as of 1 January 2019 you can sell your apartment and invoke the expiry of the so-called 5 full tax years. Remember that tax years are not to calendar years. And the above rule applies to sales within a personal property.

WHEN WE CAN’T WAIT

The situation changes dramatically when you want to sell your apartment before the end of the five tax years. The landlord is then obliged to pay tax on an income of 19%. In this case, the income is the income from the sale of the apartment, which is reduced by the cost incurred during the purchase of the property. Remember that the income you receive from the sale of the apartment must be taken into account during the settlement through PIT-39.

INTEREST RELIEF AND EXPENSES FOR NEW PROPERTY

Unfortunately, under the law, you cannot take advantage of two tax exemptions at the same time for one property. If you have benefited from a deduction of interest on income from a loan for the purchase of a property, you cannot benefit from the relief that you are entitled to for new housing expenses.

ENRICHMENT TAX AND INHERITANCE

If you inherit a real estate at the moment of death of a person close to you, the law stipulates that the acquisition of an apartment takes place on the day of death. Therefore, the date on which the decision on the inheritance acquisition by the court becomes final or the date of the deed of succession certification does not matter.

It is worth bearing in mind the position of the Tax Office, which as a result of inheritance acquisition through inheritance in the part which exceeds the share in the inheritance (at the same time the co-ownership between the heirs is abolished) treats the acquisition of real estate as a result of the described decision becoming legally binding.