“The re-sale of the inherited house requires a tax of 20% of the total house price” is considered an ancient super rumor. I myself have been asked by relatives, friends, classmates, and customers more than ten times or dozens of times. this problem. And whenever the government introduces some policies on the property market and individual taxes, this rumor will follow the trend and cause chaos. For example, on June 13, 2019, the State Administration of Taxation issued the “Announcement on Individual Income Taxable Income Items Applicable to Individual Income”, clarifying that “If real estate is given to others, the recipient needs to be calculated according to the “incidental income” item. Personal income tax is paid. But gifts to spouses, immediate family members, brothers and sisters do not need to pay. Those who inherit the house do not need to pay individual tax.”. At this time, a bunch of articles came out, saying, “Although you are exempt from paying a tax when you receive a donated house or inherit a house, when you want to sell it, you have to pay a tax of 20% of the total sale price. 1. I can’t escape fifteen!” I even passed by a real estate agency once and saw a set of second-hand housing listing information posted on the glass window that said, “Inheriting the real estate, the 20% tax will be borne by the buyer!”. How to pay the tax on the re-sale of the inherited house or the donated house? Is there a “20% tax on the total house price”? What is the legal basis? This kind of professional question really cannot be answered by everyone. You must listen to the professional answers of lawyers. 1. Is there a “20% personal tax on the total house price”? Conclusion: There is indeed a “20% personal tax”, but the total house price is not the taxable income. According to my country’s “Individual Income Tax Law”, the income from property transfer shall be subject to personal income tax, and the applicable tax rate is 20%. The difference between the transfer income and the original value of the property shall be used as the taxable income. This is actually very easy to understand. I bought a house for 1 million, sold 2 million, and earned 1 million. How much income I earned. If I sell it for 1 million, there will be no income without making money, and I don’t need to pay income tax. . As for why there is such a rumor that “20% of the total amount of the transfer of the house price is tax”, I believe that many people think that the inherited or donated real estate is obtained without compensation, so the original value of the property is 0. Therefore, when paying income tax, there is no difference between the transfer income and the original value of the real estate, and the transfer income is directly used as the taxable income. There are many such claims, and rumors have formed over time. In fact, according to Article 4 of the “Notice of the State Administration of Taxation on Several Specific Issues in the Implementation of Real Estate Tax Policies” (Guo Shui Fa  No. 172), individuals will use non-purchase forms such as donation, inheritance, and divorce property division. The purchase price of the acquired house for external sale shall be determined according to the original purchase price before the act of donating, inheriting, or dividing the property of divorce. Therefore, it can be seen that when transferring the donated or inherited real estate, the original value of the real estate is calculated based on the original purchase price, not zero. Therefore, even if you pay a 20% personal tax, the 20% personal tax is calculated by “transfer income minus the difference between the original purchase price”. 2. The sale of inherited or gifted houses are exempt from IIT tax. The sale of inherited or gifted houses by their parents can be exempted from IIT if they meet the statutory conditions. I believe many people know this condition, and even understand it well: the only thing that is full of five. The so-called five-year-old only means self-use for more than 5 years, and it is the only living room for the family. Legal basis: “Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Construction on Issues Concerning the Collection of Individual Income Taxes on Income from Individuals Selling Houses” (Caishuizi  No. 278) 4. Transfer to individuals for personal use for more than 5 years and is the only life of the family The income obtained from housing use will continue to be exempted from personal income tax. “Notice of the State Administration of Taxation on Issues Concerning the Collection of Individual Income Tax on Income from the Transfer of Individual Housing” (Guo Shui Fa  No. 108) 5. The individual is exempted from the individual’s income from the transfer of personal use for more than 5 years and the only living room of the family Income tax. 3. What is the starting point for self-use for more than 5 years? We know that in the sale of second-hand houses, the five-year period of the five-year period basically depends on the registration time of the real estate certificate, and based on this, it is judged whether the five-year period has passed. Then, if it is an inherited or gifted house, once the property right is changed, the registration time of the real estate certificate will become the date of the inheritance or gift. If I want to meet the five-year requirement, do I have to wait another 5 years? In fact, for non-purchase housing such as donation, inheritance, divorce analysis, etc., the purchase time is determined by the time of purchase before the donation, inheritance, divorce analysis, etc., rather than the time of registration of the real estate certificate. In other words, the starting point of five full in this case is the same as the starting point of selling the house when the parents are still alive or when the parents have not donated the house. Legal basis: “Notice of the State Administration of Taxation on Several Specific Issues in the Implementation of Real Estate Tax Policies” (Guo Shui Fa  No. 172) 4. Individuals will obtain housing through non-purchase forms such as donation, inheritance, and divorce property division. The relevant provisions of the “Notice” are also applicable to sales activities. The purchase time of the house is determined according to the purchase time before the property division of donation, inheritance and divorce occurs, and the purchase price of the house is determined according to the original purchase price before the property division of the donation, inheritance, or divorce occurs. 4. If there are no more than five years, the individual tax rate of 20% is too high, what should I do? When some friends see this, they think “Most people basically have a house at the age of inheritance, and it is difficult to achieve the only one. The parents bought the house more than ten years or even decades ago, and the house price is very low, even if The original purchase price can be subtracted, but it can’t be reduced much. In fact, it is not far from 20% of the total property transfer price. The tax burden is too heavy!” What should be done? Earlier, I mentioned the method of tax verification and collection. After the author consulted with classmates working in the tax bureau, Shanghai has strictly implemented the regulations on the actual collection of inherited or donated houses, and verification and collection are not allowed. In the comment area, friends from the tax bureaus of other cities also commented that after 2019, the inherited or donated houses will no longer be subject to verification and levy. In this case, certain tax planning can be carried out. For example, you can consider gifting the inherited house to adult children, grandchildren or siblings who do not have a house under their name (it is recommended to sign an agreement in advance), and you need to pay 3%-5% (Depending on the city, the tax rate will be different) The deed tax and the stamp tax of five ten-thousandths of the gift are sold by the adult children, grandchildren or siblings of the gift at least five, which can save a lot of personal tax. . Before proceeding with tax planning, it is highly recommended to consult with professional lawyers and tax agents and sign relevant agreements to avoid any disputes. Ending: Family housing is related to the fundamentals of people’s livelihood. my country’s tax policies for individual housing, especially for properties acquired by inheritance and gifts from relatives, are more humane, whether it is taxation at the time of acquisition or collection at the time of resale. , It is biased towards the people’s consideration. In the face of such rumors and gossip, Attorney Xu reminded everyone that they must be based on facts and the law as the criterion.