The Legal Side of Real Estate

[skyscraper]

Thanks for all the inputs. I just got my new TCT yesterday. Most of the answers to queries here are correct. Thanks for the lawyer members we have. :thumbsupsmiley:

 

Sale - I agree with Dr Pepper. Capital gains tax will be 6% of the higher of gross selling price or zonal value. If the house and lot you are selling is your principal residence, the sale may be exempt if you plan to use the proceeds of the sale to buy a new principal residence within 18 months. Documentary stamp tax will be 1.5% of the higher of gross selling price or zonal value.

 

Donation - It is better to donate if the fair market value of the house and lot is less than P1.8 million (At P1.8 million, the rate of capital gains and donor's tax are the same - 6%).

[teban]

thanks po sir rocco. Ask ko lang din po if such is the case it means na 50% lang dapat yung taxable right? how much po ba ang estate tax? and saan po ito nababase?

 

If in case hindi pa naman ililipat yung name ng mom ko out of the title so wala kaming babayaran na tax tama?

 

thanks po!

[burnik20]

i find this thread very interesting, helpful and informative. my question: i've read in the earlier posts that a person can avoid paying the capital gains tax if he intends to buy another property from the proceeds of the sale, provided the new property to be bought is not of lesser value to the property sold; if this is the case, how many times can a person do this in his lifetime, are there any restrictions? where can i look up this particular rule for reference? thanks in advance.

[rocco69]

1. if such is the case [does] it mean na 50% lang dapat yung taxable right?

 

ang taxable ay ang ari-arian na naiwan ng father mo. Ang sabi mo, there are two properties. Sino ang may-ari nung isa pa?

 

Now, kung ang naiwan na ari-arian ng father mo ay ang 1/2 share niya dun sa lupa na naka-title sa mother mo, yun lang ang taxable.

 

2. how much po ba ang estate tax?

 

ang rate ay:

P200T - P550T - 15% of excess over P200T

P500T - P2M - P15,000 + 8% of excess over 500T

P2M - P5M - P135,000 + 11% of excess over P2M

P5M - P10M - P465,000 + 15% of excess over P5M

P10M and over - P1,215,000 + 20% in excess of P10M

 

3. saan po ito nababase?

 

generally, sa halaga ng lahat na naiwang ari-arian ng pumanaw. although merong mga gastusin na pwedeng i-deduct sa taxable amount (tulad ng halaga ng bahay na pag-aari at tinitirhan ng mag-asawa, up to P1M deductible; yung ginastos sa huling sakit pero di lalampas ng P500T; gastos sa pagpapalibing pero di lalampas ng P200T, etc.)

 

4. If in case hindi pa naman ililipat yung name ng mom ko out of the title so wala kaming babayaran na tax tama?

 

yung tax ay kailangang bayaran sa loob ng anim (6) na buwan mula ng mamatay ang ama ninyo, otherwise tatakbo na ang interest at penalty charges.

 

again, dahil medyo masalimuot ang ganitong bagay-bagay, mas maganda na kumunsulta kayo sa abugado, or at the very least, sa isang CPA.

 

thanks po sir rocco. Ask ko lang din po if such is the case it means na 50% lang dapat yung taxable right? how much po ba ang estate tax? and saan po ito nababase?

 

If in case hindi pa naman ililipat yung name ng mom ko out of the title so wala kaming babayaran na tax tama?

 

thanks po!

[rocco69]

1. if this is the case, how many times can a person do this in his lifetime, are there any restrictions?

 

Ito ay nasa Tax Code, specifically Section 24D(2) na nagsasabi na:

 

(D) Capital Gains from Sale of Real Property. -

 

(1) In General. - The provisions of Section 39( notwithstanding, a final tax of six percent (6%) based on the gross selling price or current fair market value as determined in accordance with Section 6(E) of this Code, whichever is higher, is hereby imposed upon capital gains presumed to have been realized from the sale, exchange, or other disposition of real property located in the Philippines, classified as capital assets, including pacto de retro sales and other forms of conditional sales, by individuals, including estates and trusts: Provided, That the tax liability, if any, on gains from sales or other dispositions of real property to the government or any of its political subdivisions or agencies or to government-owned or controlled corporations shall be determined either under Section 24 (A) or under this Subsection, at the option of the taxpayer.

 

(2) Exception. - The provisions of paragraph (1) of this Subsection to the contrary notwithstanding, capital gains presumed to have been realized from the sale or disposition of their principal residence by natural persons, the proceeds of which is fully utilized in acquiring or constructing a new principal residence within eighteen (18) calendar months from the date of sale or disposition, shall be exempt from the capital gains tax imposed under this Subsection: Provided, That the historical cost or adjusted basis of the real property sold or disposed shall be carried over to the new principal residence built or acquired: Provided, further, That the Commissioner shall have been duly notified by the taxpayer within thirty (30) days from the date of sale or disposition through a prescribed return of his intention to avail of the tax exemption herein mentioned: Provided, still further, That the said tax exemption can only be availed of once every ten (10) years: Provided, finally, that if there is no full utilization of the proceeds of sale or disposition, the portion of the gain presumed to have been realized from the sale or disposition shall be subject to capital gains tax. For this purpose, the gross selling price or fair market value at the time of sale, whichever is higher, shall be multiplied by a fraction which the unutilized amount bears to the gross selling price in order to determine the taxable portion and the tax prescribed under paragraph (1) of this Subsection shall be imposed thereon.

 

Mula sa sumusunod, hindi dahil ipambibili mo rin ang pera na kinita mo ng ibang property ay exempted ka na. Exempted ka kung ang ibenenta mo ay ang iyong "principal residence", yung talagang tinitirhan mo o tinuturing mo na pangunahing bahay mo; pagkatapos ang perang kinita mo ay ipambibili mo rin ng titirhan mo. In other words, nagpapalit ka na tirahan kaya mo ibenenta ang luma mong bahay. Dun lang sa sitwasyon na yan exempted sa capital gains ang seller.

 

Tapos, ito ay magagawa mo lamang, once every ten years.

 

2. where can i look up this particular rule for reference?

 

see www.bir.gov.ph. tingnan mo sa "tax code" section dun

 

i find this thread very interesting, helpful and informative. my question: i've read in the earlier posts that a person can avoid paying the capital gains tax if he intends to buy another property from the proceeds of the sale, provided the new property to be bought is not of lesser value to the property sold; if this is the case, how many times can a person do this in his lifetime, are there any restrictions? where can i look up this particular rule for reference? thanks in advance.

[teban]

thanks sir rocco. Both properties are with the same title as described earlier My mom married to my dad.

 

If in case, we needed to renovate the house would there be any possibility that we can waive the estate taxes by offsetting our costs?

 

Tsaka saan po ba kami pwede humingi ng tulong na attorney or CPA yung hindi po sana costly I think this is a basic legal matter that has not much problems right?

 

 

Thanks po!

[rocco69]

1. if in case, we needed to renovate the house would there be any possibility that we can waive the estate taxes by offsetting our costs?

 

parang malabo na mai-offset niyo ang gastos nyo sa renovation, kasi fixed naman ang value nung properties, at ito yung basehan ng estate tax. Yung mga deductible, makikita nyo rin sa www.bir.gov.ph, sa tax code section, tingnan nyo sa estate tax subsection (andun yung P1M standard deduction etc.)

 

2. saan po ba kami pwede humingi ng tulong na attorney or CPA yung hindi po sana costly?

 

punta kayo sa Public Attorney's Office sa city nyo (dun kayo magtanong sa city hall kung nasaan ito, siguradong alam nila ito, or you can go to East Ave, nasa likod ng Land Registration Authority ito). pwede rin kayong pumunta sa mga legal assistance program ng mga law school (meron ang UP, San Sebastian, Arellano); o di kaya sa Integrated Bar of the Philippines.

 

thanks sir rocco. Both properties are with the same title as described earlier My mom married to my dad.

 

If in case, we needed to renovate the house would there be any possibility that we can waive the estate taxes by offsetting our costs?

 

Tsaka saan po ba kami pwede humingi ng tulong na attorney or CPA yung hindi po sana costly I think this is a basic legal matter that has not much problems right?

 

 

Thanks po!

[teban]

thanks po sir rocco

[cavs]

balak namin bumili lot sa isang subdivision, na check na namin title ok naman at nagkasundo na sa price.

ang problem nasa usa ang lalaki at ang babae lang ang kausap namin.

sa babae naman nkapangalan ang title pero since mag asawa sila, ano ba ang dapat gawin?

 

kailangan ba ng special power of attorney?

matagal daw kasi un sabi nung babae?

 

thanks! pls help...

[teban]

hi po its me again. may problem po kami ulit sa makati lot namin. Bale yung father ko nakakuha na ng occupancy permit sa makati engineering and then naipit yung papers sa engineering till now hindi pa umabot sa assessors. Yung occupancy permit po started 2003 pa. panu po ba yung ganun since dapat di ba ang babayaran namin sa real estate tax is may building na?

 

may nagsasabi kasi na walang kaso yun

may nagsasabi naman na kelangan bayaran agad kasi baka ang laki na daw ng interest

ang pananaw ko naman po ay una hindi namin kasalanan na naipit sa engineering department inaantay namin yung bagong ipapataw na tax pero wala. and then second wala na yung dad ko na sya lang nagaasikaso nun sa city hall before.

 

note: yung buuilding po pala hindi pa talaga tapos na tapos kasi dapat may additional construction na pero may tumitira na po sa 2nd floor wala pa sa first floor.

 

please advise po thanks!

[boserokid]

Mga experts help naman please.

 

My parents, wanted to transfer to my name a property they bought in Alabang. Currently this property is being rented. My parents got the property nung 1987 pa, it is a house and lot. They told me to take care of everything but I dont know how to start. Help naman please. Heard from a friend I need Deed of Donation. Please help me where to start. Thanks in advance.

Edited January 21, 2009 by boserokid

[redax]

Mga experts help naman please.

 

My parents, wanted to transfer to my name a property they bought in Alabang. Currently this property is being rented. My parents got the property nung 1987 pa, it is a house and lot. They told me to take care of everything but I dont know how to start. Help naman please. Heard from a friend I need Deed of Donation. Please help me where to start. Thanks in advance.

 

You need to present to the Register of Deeds in the city or municipality where the property is located the Deed of Donation, the certification that you have paid the donor's tax from the BIR, certification that you have paid the transfer tax from the City or Municipal Treasurer's Office, Tax Clearance from the City or Municipal Real Estate Division of real property tax payments and the owner's certificate of title to transfer the property to your name.

[aris_m]

Mga experts help naman please.

 

My parents, wanted to transfer to my name a property they bought in Alabang. Currently this property is being rented. My parents got the property nung 1987 pa, it is a house and lot. They told me to take care of everything but I dont know how to start. Help naman please. Heard from a friend I need Deed of Donation. Please help me where to start. Thanks in advance.

 

You might want to look at the possibility of your parents instead of "donating" it to you, baka pwede "sell" it to you. The tax consequences are different. To sell, around 8% of zonal value or market value of the property whichever is higher, to donate, tax rate would depend on the value of the property, maximum of 35% ata, plus 2% (doc stamps, transfer tax) .... Or you might want to consider estate plannning...(forming a corporation, tax-free exchange, etc...)...

 

Cheers!

[teban]

may nabasa ako na isang book about estate planning ang percentage tax based on total donations is determined for the whole amount of donation for a whole year meaning pwede pakonti konti yung donations just to be able to get to the lower tax bracket.

[spetsnaz]

OT: does anybody here know Atty Antonio C. Silang? pa PM na lang po. thanks