capital gains tax
capital gains tax
I bought a house and know if I wait two years I avoid capital gains tax if I sell. I'm considering knocking down the old house (cos it's crap) and building a new one. Does the two year period continue from when I bought the original house or restart from when the new house is ready? I've looked on the Finnish tax website but there is no info on this (in English anyway) Can anyone help?
Don't work me, I just ask here
Re: capital gains tax
Where will you live while you are building the new house?
They might require you to live in the house before you sell it. The CGT exemption is only valid on your principal residence. You would probably have to notify the tax office that your registered domicile (eg if you are renting a flat while building the new house) is not your principle residence. Under the Finnish system I have a funny feeling (but not sure) that your henkilötunnus address is the only one which you can sell tax free.
Call Vero and ask them the question. And get the answer in writing if you can.
They might require you to live in the house before you sell it. The CGT exemption is only valid on your principal residence. You would probably have to notify the tax office that your registered domicile (eg if you are renting a flat while building the new house) is not your principle residence. Under the Finnish system I have a funny feeling (but not sure) that your henkilötunnus address is the only one which you can sell tax free.
Call Vero and ask them the question. And get the answer in writing if you can.
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Pursuivant
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Re: capital gains tax
well... I am not sure if you can have your primary residence at the house in construction and temporarily live elsewhere... like I have the cottage if it were classified as a "house" (I'm not 100% sure which it is) so I could "move" into it... erm... too much Paavo Väyrynen...
"By the pricking of my thumbs,
Something wicked this way comes."
Something wicked this way comes."
Re: capital gains tax
Yes, I wondered that too. If he knocks down the house and lives in a caravan or a container in the back yard then I guess his address would remain unchanged (but not sure it is OK to live in a caravan in a residential area...) so might count in the two years.
I think the best thing is to ask Vero some very specific questions. But this must have come up lots of times before, so they will have the answers.
One thing is for sure... you have to actually make a GAIN before you have to pay any tax..... not many people I know have managed to turn around a new property in less than two years and make a gain....
I think the best thing is to ask Vero some very specific questions. But this must have come up lots of times before, so they will have the answers.
One thing is for sure... you have to actually make a GAIN before you have to pay any tax..... not many people I know have managed to turn around a new property in less than two years and make a gain....