Posted on 31 July 2023
How to declare the sale of your second home or rental property?
🏠💰 Sale of a second home or rental: How to declare the capital gain? Speculative gain or disposal? We'll guide you! 💼💡
Speculation profit 🔄💲
If sale < 2 years after purchase, it's speculation. Calculation: sale price - purchase price = profit. Taxation at the "normal" rate.
Profit on sale 💼🏠
If sale > 2 years after purchase, capital gain. Calculation: sale price - revalued purchase price = profit. Taxation at half the overall rate, max 21%.
Advantageous tax relief 💰💑🏠
Take advantage of tax allowances of up to €100,000 for spouses/partners and €75,000 in the event of inheritance.
Example: Yannick sells his second home. Purchased in 2016 at €500,000, sold in 2021 at €800,000 (revalued at €600,000).
Holding period: 5 years (<2 years). Capital gain: €200,000. Allowance: €100,000. Tax: €15,000.
Declare your capital gains easily with taxx.lu! 🖥️💼
#TaxDeclaration #CapitalGains #SaleProfit #Deductions #taxx.lu #TaxOptimisation 💰🏢🖥️