Reported 12 months ago
To protect the need for self-occupied housing exchanges and avoid reducing the ability to reacquire self-occupied property due to taxation, the Income Tax Law provides tax incentives for property exchanges. Home swappers can save taxes through the property acquisition and resale tax refund incentive, as long as they meet 3 major requirements. However, it is essential to note that 'buy new and sell new' does not comply with the regulations, as seen in an example where a person purchased two properties but later sold one that was not the old self-occupied property, resulting in having to pay 760,000 yuan in taxes. The tax authorities emphasize the need to meet specific criteria to qualify for the property acquisition and resale tax refund incentive, and failure to do so may lead to additional tax liabilities.
Source: YAHOO