A person who has temporarily become a second-homeowner due to circumstances such as moving can receive tax benefits as a single-family homeowner if he or she sells the existing house within three years after buying a new house.
This extension of the disposition period will be applied retroactively from today (12th).
The government announced an amendment to the Enforcement Decree today at an emergency economy ministers meeting presided over by Deputy Prime Minister and Minister of Strategy and Finance Chu Kyung-ho.
According to the amendment, the deadline for disposing of a house for a temporary second-homeowner to receive special taxation as a single-family homeowner will be extended from the current two years to three years.
Currently, if a temporary second-homeowner acquires a new house while owning one existing house, he or she must dispose of the existing house within two years to receive a special exception.
In the future, it means that if you sell the rest of the house within 3 years after buying a new house, it will be considered as a single-family home.
The deadline for disposing of a house is generally extended regardless of the type of tax or the location of the house.
First of all, in the case of comprehensive real estate tax (comprehensive real estate tax), tax benefits are provided when a new home is acquired anywhere in the country and an existing home is sold within 3 years.
During this period, temporary homeowners with two houses can apply for a basic deduction for one house per household (KRW 1.2 billion) instead of a general basic deduction (KRW 900 million) when paying comprehensive real estate tax.
This means that you do not have to pay final real estate tax up to 1.2 billion won based on the public announcement.
If you are a senior citizen or have owned your home for a long time, you can also get a tax credit of up to 80%.
For transfer tax and acquisition tax, the deadline for disposing of houses in the area subject to adjustment will be extended from two years to three years.
Even now, in non-regulated areas, if you dispose of an existing house within three years from the date of acquiring a new house, you can enjoy transfer tax and acquisition tax benefits, but the same benefits will be granted in future areas subject to adjustment.
As a result, temporary second-homeowners who change houses in the areas subject to adjustment, such as Gangnam 3-gu (Seocho, Gangnam, Songpa-gu) and Yongsan-gu, can breathe in the process of disposing of their housing.
If they acquire a new house and dispose of their existing house within 3 years, they can also benefit from transfer tax exemption as a one-householder per household, and can also receive a special long-term holding deduction of up to 80%.
The transfer tax exemption threshold for one household and one house is KRW 1.2 billion based on the current market price of the house.
Acquisition tax is also subject to an 8% heavy tax rate if you own a second home in the area subject to adjustment, but a temporary second homeowner only has to pay a basic tax rate of 1-3% on the premise that you will dispose of your home within 3 years.
The government explained, "This is a measure to alleviate the inconvenience of temporary second-homeowners who have difficulty disposing of their previous homes due to unavoidable factors such as an increase in interest rates and a decrease in transaction volume in the housing market, and to minimize the market shock caused by sudden sales."
Since the extension of the deadline for disposing of housing is an amendment to the Enforcement Decree, the government can promote it on its own.
The government promulgated and enforced the revised enforcement ordinance in February, but decided to apply the extension of the disposition period retroactively from today.
Accordingly, transfer and acquisition tax benefits will be applied from the transfer of the previous house after January 12, 2023, and comprehensive real estate tax benefits will be applied from the tax payment obligation established this year.
(Photo = Yonhap News)