Beijing decoration expenses can be deducted from t

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Yuan Yuan

recently, Beijing introduced new regulations on the individual income tax deduction of second-hand housing transactions. According to the “ Announcement on issues related to individual income tax on housing transfer by individuals ”, From New Year's day, even if the seller cannot provide a valid decoration invoice for second-hand housing transactions, the tax authorities can also verify and deduct individual income tax from the housing decoration expenses within the range of 10% of the transaction price

the announcement said that for the individual income tax that should be levied on the transfer of housing by individuals, if the taxpayer can provide complete and accurate certificates of the original value of the housing, or can verify the original value of the housing through the tax collection and management, housing registration and other information systems, it will be levied at 20% of the transfer income. According to national regulations, the individual income tax is “ Transfer income minus the original value of the house, taxes paid in the process of transferring the house, and relevant reasonable expenses ” 20% of the difference, that is, decoration costs, mortgage interest, etc. can be deducted

what if the taxpayer fails to provide legal and effective certificates of decoration expenses? When handling the tax declaration of individual transfer of housing, taxpayers should be in the "tax information list" “ Certificate of housing decoration expenses ” Select “ in the column; None ”, Instead of submitting the "summary sheet of invoice for housing decoration expenses" and the original invoice for housing decoration, the tax authorities will verify the housing decoration expenses and fill them in the "application form for issuing invoices on behalf of individuals selling houses" “ Housing decoration expenses ” Columns

taxpayers can handle the tax declaration of individual transfer of housing at the tax authority from the 1st day according to the new policy. If the transaction price of the housing declared by the taxpayer is obviously lower than the market price and there is no justified reason, the tax authority shall levy tax according to the relevant provisions, that is, the approved tax price determined by referring to the transaction price evaluation value of the stock housing

suppose that the owner of a house paid 1million yuan, 2million yuan, 200000 yuan for house decoration, and 20000 yuan for various taxes and handling charges. According to individual income tax = (transaction price - original price - tax - reasonable fee) × According to the 20% calculation formula, the individual income tax will become 156000 yuan, and more than 40000 yuan of individual income tax may be paid less due to decoration costs

“ For the decoration expenses incurred before the introduction of the policy, due to the lack of clear policy provisions, the taxpayer's receipt of invoices is generally not standardized, so it cannot be deducted before tax. The verification of housing decoration expenses for taxpayers who cannot provide housing decoration invoices avoids taxpayers being unable to enjoy tax deduction policies due to nonstandard decoration vouchers, and protects the legitimate rights and interests of taxpayers& rdquo; The relevant person in charge of the Municipal Local Taxation Bureau said

the new regulations actually reduce transaction costs and promote the circulation of real estate. According to the new regulations, more people will be able to enjoy the policy of deduction of housing decoration expenses in the future, which is good for both parties to the transaction





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