How to delineate the inheritance of real estate over five

Mondo Social Updated on 2024-01-31

"Full five unique" means that the real estate certificate is calculated from the date of issuance, has been five years or more than five years, and is the only house registered by the owner in the land bureau system or housing management system in the province or urban area. The "full five" here refers to the "starting date" on the date of issuance of the real estate certificate or the date of issuance of the deed, which is five years or more"Unique" means that the owner is the only one registered in the housing ownership registration system in the province or city.

When the property is inherited as an inheritance, if the condition of "full five unique" is met, it will enjoy certain tax benefits. Specifically, properties that meet the "full five unique" can be exempted from individual income tax when **. This is an important consideration for heirs as it directly affects the costs and benefits of the property transaction.

Let's say Mr. Zhang inherited a property in an urban area five years ago, and this is his only home in that urban area. Now, he's going to ** the property. Since the property meets the condition of "full five unique", Mr. Zhang does not need to pay individual income tax when he is **. This greatly reduced his transaction costs and increased his ** earnings.

Relevant Regulations. The "Individual Income Tax Law of the People's Republic of China" stipulates that the income obtained by an individual's own housing shall be subject to individual income tax according to the item of "income from property transfer". However, for properties that meet the conditions of "full five unique", they can be exempted from individual income tax.

The Notice on Individual Income Tax Issues Concerning Houses Donated by Individuals Free of Charge stipulates that if the owner of the property right of the house donates the property right to his spouse, parents, children and other relatives free of charge, no individual income tax shall be levied on both parties. This means that when inheriting a property, the heirs do not need to pay personal income tax. However, if the heirs inherit the property without meeting the conditions of "full five unique", they need to pay the corresponding individual income tax.

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