Understanding the Tax Implications When Selling a Home: How to Avoid Paying Capital Gains Tax

When a home is sold there is expenses such as IRPFplus municipal value and IBI which we must count on. Of them the one taxes the capital gain obtained from the saleattributable to the income tax returnis usually by far the largest and, however, the seller would not always be obliged to pay it.

exist 3 assumptions that will allow you to avoid the Treasury:

• If the property they are selling is their habitual residence and the money obtained from its sale is used in the purchase of a new habitual residenceas long as you have lived in the apartment being sold for a minimum of 3 years and the reinvestment is made within a maximum period of 2 years.

• If someone sells their habitual residence is over 65 years old You may not reinvest the money from the sale in the purchase of another property. At the same time, if a person over 65 years of age sells a second home and invests what he obtains in a life annuity, he will not have to pay taxes to the Treasury if the amount received does not exceed 240,000 euros and other requirements such as contracting the life annuity are also met. within a maximum of 6 months from the day of sale

• Those who have had to give up their habitual residence in Settlement and do not own another property are also exempt from paying personal income tax. Actually, in this case it is considered that the transfer value of the apartment is equal to the amount of mortgage owed and, consequently, lower than what it cost to acquire it, so there would be no capital gain.