The main residence is exempt from capital gains tax. (Shopping)
Taxing real estate gains is expensive, but there are solutions to reduce the bill legally! Explanations.
The real estate market has continued to grow in recent years. Apart from the principal residence, which is exempt, selling real estate can be very expensive.
Increase in social security contributions, surtax for capital gains exceeding 50,000 euros, etc., the tax authorities heavily drain your capital gains. To avoid seeing your earnings melt like snow in the sun, here are some tips to know.
1 – Delay the sale of the accommodation
Time is of the essence when it comes to real estate capital gains tax. If you have owned the property for more than five years, you benefit from deductions depending on the length of detention.
Given these reductions, the capital gain is completely exempt from income tax after twenty-two years. The deadline is longer for social security contributions, but the annual abatement rates increase sharply after the twenty-second year of detention.
If the date scheduled for the signing of the deed is close to the anniversary date of the acquisition, no need to hurry. It is even wise to shift the signature by a few months if this allows you to benefit from an additional year of reduction.
If you have owned the property for more than twenty-two years, waiting a few additional months to obtain 9% more discount on the capital gain may be