7 ways to sell real estate without paying personal income tax

The tax on the sale of real estate can be significantly reduced or not paid at all if you know how to act competently within the law. And, despite the fact that the state is interested in making a profit from apartment sales transactions, it also allows some indulgences. Under certain conditions, of course. How to sell a house without paying taxes? 

1. The sale after the minimum period of ownership of real estate is not taxed if this period is from 3 to 5 years. Here it is necessary to take into account the type of real estate, the year of purchase and other nuances.

2. Personal income tax is absent when selling a single home. At the same time, if an apartment or a house is sold by a spouse, then housing should be the only one for both of them.

3. Families with two or more children are exempt from tax if they sell and buy housing within one calendar year.

4. If you sell real estate at a cost lower than you purchased it (but not less than 70% of the cadastral value), then you do not need to pay tax.

5. There is also no personal income tax if the cost of sale and purchase remains unchanged, but not less than 70% of the cadastral value.

6. No tax is levied if the property was purchased before January 1, 2016.

7. Objects that have been inherited, received as a gift from relatives, transferred under a lifetime maintenance contract or privatized are exempt from tax. The main thing is that the period of ownership of the property is at least 3 years.

So. If you are going to sell a house, then it is better to think about saving on taxes in advance. And in order not to pay the state too much, keep all documents about real estate expenses.