Hi

Can I escape the property transfer tax if ordered by the court to sell within 10 months. The house was purchased less than five years ago.

Probably not but I thought it worth asking

Why would u think that u should be able to escape property tax

HAvent you heard about death and taxes et al

Land Officer will calculate transfer tax regarding to transfer dated which showed onTitle Deed (Chanote)

So, you can't change transfer dated to 5 years ago.

I think what he was asking was ....since it is a court ordered sale, would that affect whether or not he would be taxed on the sale. I did not read that he want to illegally evade the tax or back date the sale.

Isn't the tax on a sale at a higher rate if sold within 5 years than if after 5 years? If so, then that is why he mentioned the age of the house. And, if so, then another question he might want to ask is, given he is forced to sell, can he use that court order to get the lower tax rate?

And I can foresee another question: if he sells below market value to get out quickly (and I mean at a price way below the land office "appraised rate" and at one that generates several buyers within the first week), what would he have to show the tax man to prove he literally sold at a loss and, therefore, has zero profit to tax?

Edited September 26, 201015 yr by noise

I think what he was asking was ....since it is a court ordered sale, would that affect whether or not he would be taxed on the sale. I did not read that he want to illegally evade the tax or back date the sale.

Isn't the tax on a sale at a higher rate if sold within 5 years than if after 5 years? If so, then that is why he mentioned the age of the house. And, if so, then another question he might want to ask is, given he is forced to sell, can he use that court order to get the lower tax rate?

And I can foresee another question: if he sells below market value to get out quickly (and I mean at a price way below the land office "appraised rate" and at one that generates several buyers within the first week), what would he have to show the tax man to prove he literally sold at a loss and, therefore, has zero profit to tax?

Thanks Senior Member - I think I was a little short on details, but remember the 'dumb down' rule! But your extemely sensible contribution has restored my confidence that some contributors to this site do want to genuinely help. Thanks again. so if anyone does have any useful info, I would appreciate to see your reply.

I think what he was asking was ....since it is a court ordered sale, would that affect whether or not he would be taxed on the sale. I did not read that he want to illegally evade the tax or back date the sale.

Isn't the tax on a sale at a higher rate if sold within 5 years than if after 5 years? If so, then that is why he mentioned the age of the house. And, if so, then another question he might want to ask is, given he is forced to sell, can he use that court order to get the lower tax rate?

And I can foresee another question: if he sells below market value to get out quickly (and I mean at a price way below the land office "appraised rate" and at one that generates several buyers within the first week), what would he have to show the tax man to prove he literally sold at a loss and, therefore, has zero profit to tax?

It's a transfer tax, a fee to transfer the ownership name with the sale of property. It has nothing to do with profit or loss.

The fee is assessed based on the current value of the property as determined by the land office. If it has been less than 5 years in the current owners name, it will be assessed at the higher rate. If the ownership involves a corporation, it will be assessed at a even higher rate.

The fee is paid by the seller, buyer, or both. It has to be paid, in order to transfer ownership. Usually if the transfer does not take place by the deadline in the court order, the land office acquires the property.

There is no exception. Of course an appeal could be submitted to the court if there were grounds for an appeal.

I am surprised the transfer tax was not negotiated with the buyer as part of purchase agreement.

Where is the attorney in all this? Somehow I suspect this whole subject is a troll.

Edited September 26, 201015 yr by BB1950