Who will pay taxes in buying a lot inside subd.

**zenon** · November 28th, 2011 11:46 AM

I am buying a lot inside the subd and I honestly don't have idea which taxes should be paid by the seller and the buyer. I know the buyer shoulders the doc stamps in transfering the title. but what about capital gains tax who should be shouldering this.. the buyer or the seller or both? malaki laki rin kasi ito... 6% ba ng selling price. is there a workaround to lower this.. just want to make it sure hindi ako maguyo ng mga ahente?... salamat!

**ChunkyLover** · November 28th, 2011 12:01 PM

capital gains tax is shouldered by the seller not the buyer...
pero both of your could come to a agreement..
"under declare" the value of the lot... but not by much compared to original value...
check BIR's site... i think they have calculations for zonal value....
but remember not by much....
it would pretty much give a smile to the seller considering more money would be saved.

1.if your payment is check... make him sign a photocopy of it... not the "fake" value... but the original agreed value....
2. make 2 deed of sale... one is the "fake" value.. and one is "original" value...
but don't notarize the original value... only the fake...

HTH GL
kudos :D

**CVT** · November 28th, 2011 03:00 PM

Transfer tax, which is 1% of the "selling price" is normally shouldered by the buyer....

14.4K:out:

**111prez** · November 28th, 2011 04:19 PM

CGT is always for the seller's account

the seller is the one gaining from this capital transaction. seller is the one who files the return or report for this with the BIR

but, the parties can agree on who actually bears the cost

if agreed upon, sellers also can opt to sell their property at a price to cover the CGT due

**CVT** · November 29th, 2011 09:15 AM

Misnomer nga iyang capital gains tax... You are not paying tax for the gain only (selling price less old buying price)....

You are paying tax for the capital (whole selling price).... Dapat tawagin iyang capital tax...

14.5K:higop:

**_Qwerty_** · November 29th, 2011 09:35 AM

eh kasi mautak ang pinoy.. kung sa gains lang magbabayad.. eh di lahat nang bentahan palugi.. para walang CGT

Originally Posted by CVT

Misnomer nga iyang capital gains tax... You are not paying tax for the gain only (selling price less old buying price)....

You are paying tax for the capital (whole selling price).... Dapat tawagin iyang capital tax...

14.5K:higop:

**shadow** · November 29th, 2011 10:05 AM

Typically buyer din nagbabayad ng CGT, lalo na pag direct buyer/seller

**111prez** · November 29th, 2011 10:06 AM

Originally Posted by _Qwerty_

eh kasi mautak ang pinoy.. kung sa gains lang magbabayad.. eh di lahat nang bentahan palugi.. para walang CGT

kung real property, it is either based on the zonal valuation or market/selling valuation whichever is higher

now you know why most will sell, or at least make it appear in the deed of sale, that the selling price is based on the zonal valuation

of course, the BIR can always dispute the valuation used in the deed of sale especially if it is very obvious that taxes are being evaded. kaya hindi mo rin puede i-benta palugi ito at mas lalong mahuhuli yan

**111prez** · November 29th, 2011 10:07 AM

Originally Posted by shadow

Typically buyer din nagbabayad ng CGT, lalo na pag direct buyer/seller

buyer never pays the CGT as it is not his gain

this is always for the sellers account

but the parties can agreed to sell the property at a price that will cover the CGT para malinis ang makuha ng seller

diskarte nalang yan sa selling price at kung defensible ito sa BIR

**shadow** · November 29th, 2011 10:11 AM

Originally Posted by 111prez

buyer never pays the CGT as it is not his gain

this is always for the sellers account

but the parties can agreed to sell the property at a price that will cover the CGT para malinis ang makuha ng seller

diskarte nalang yan sa selling price at kung defensible ito sa BIR

Supposedly but based on experience typical pinoy seller doesnt want to have any cash out from the sale, basta pag nagbenta gusto wala ng lalabas na pera sa seller i.e. Taxes, notary, etc...