View Full Version : Income tax on property sold
I want to understand how income is to be calculated in this case.
buy a PC at 1 Mil$ [inclusive of SD+Lawyer fee etc] in Year YYYY, sale it at 1.5 Mil in YYYY+5 Year
Capital gains tax?....
Please don't even suggest
buttercarp
06-01-13, 17:36
Capital gains tax?....
Please don't even suggest
http://www.iras.gov.sg/irashome/page04.aspx?id=152
Generally, the gains derived from the sale of a property in Singapore is not taxable as it is a capital gain.
When is it taxable
When a person is deemed to be trading in properties, the gains from the sale of property in Singapore is considered taxable income. Whether a person is deemed to be carrying on a trade will depend on individual circumstances.
To determine if a person is trading in properties, IRAS applies a set of guidelines known as the "badges of trade". IRAS considers the facts of each case against the criteriaof the "badges of trade" to determine whether the gains are taxable.
Examples of the criteria are as follows:
Frequency of transactions (buying and selling of properties)
Reasons for acquiring and selling of property
Financial means to hold the property for long term
Holding periodHow to report
You need to declare taxable gains from sale of property under 'Other income' in your tax form.
If you sold a property and require clarification on the tax treatment, you can email us (http://www.iras.gov.sg/irasHome/emailiras.aspx) or fax to us on 6351 3636.
http://www.iras.gov.sg/irashome/page04.aspx?id=152
Generally, the gains derived from the sale of a property in Singapore is not taxable as it is a capital gain.
When is it taxable
When a person is deemed to be trading in properties, the gains from the sale of property in Singapore is considered taxable income. Whether a person is deemed to be carrying on a trade will depend on individual circumstances.
To determine if a person is trading in properties, IRAS applies a set of guidelines known as the "badges of trade". IRAS considers the facts of each case against the criteriaof the "badges of trade" to determine whether the gains are taxable.
Examples of the criteria are as follows:
Frequency of transactions (buying and selling of properties)
Reasons for acquiring and selling of property
Financial means to hold the property for long term
Holding periodHow to report
You need to declare taxable gains from sale of property under 'Other income' in your tax form.
If you sold a property and require clarification on the tax treatment, you can email us (http://www.iras.gov.sg/irasHome/emailiras.aspx) or fax to us on 6351 3636.
Thank you, that's the relief :)
Just wondering if anyone has been taxed before for bring too active i.e high frequency? and how to determine if this person(s) is a trader?
read this thread...
http://forums.condosingapore.com/showthread.php?t=13030&highlight=taxman
Just wondering if anyone has been taxed before for bring too active i.e high frequency? and how to determine if this person(s) is a trader?
I m happy my ordeal prove to be useful lesson for others keke
Actually I prefer capital gains tax rather than SSD as a CM like in the late 90s. It is fairer bcoz you only tax the profit, with SSD you are taxed even if you lose money.
If an unforseen event tumbles the world economy, defaulters are going to hit with a double whammy. With such risks it is a wonder that Singaporeans are still pouring money into the developers' deep pockets.
Actually I prefer capital gains tax rather than SSD as a CM like in the late 90s. It is fairer bcoz you only tax the profit, with SSD you are taxed even if you lose money.
If an unforseen event tumbles the world economy, defaulters are going to hit with a double whammy. With such risks it is a wonder that Singaporeans are still pouring money into the developers' deep pockets.
SSD are meant to deter speculation. so it does what is suppose to do. prevent speculation. so when a person loose $ is his par sar . tats the risk. Want to speculate then be ready of the risk.
SSD are meant to deter speculation. so it does what is suppose to do. prevent speculation. so when a person loose $ is his par sar . tats the risk. Want to speculate then be ready of the risk.
Capital gains tax can curb speculation too, no?
Capital gains tax can curb speculation too, no?
so it encourage people to bet.. loose $ no penalty. only when make $.. with the SSD this makes it even more undesirable to take risk
I m happy my ordeal prove to be useful lesson for others keke
How is your case now?
How is your case now?
still under review.
SSD is ok with pple buying now as the construction takes avg 4 yrs anyway.
so it encourage people to bet.. loose $ no penalty. only when make $.. with the SSD this makes it even more undesirable to take risk
Hmm...
U don't think it shld be in tandem?
Well l guess MAS made a mistake introducing capital gains tax from 1996-2001 as a cooling measure
Capital gains tax can curb speculation too, no?
yes but it is at the "tail end". some (or maybe most) commoners dun care what happens at the end. they only care about what is upfront.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.