Land Donation questions

**Mask Rider Blac** · February 5th, 2023 10:45 PM

Ang basis ng capital gains tax ay the higher between:
1) Sales price; and
2) Zonal value.
Hanggang zonal value lang ang lowest price since any price lower hindi na iku-consider ni BIR.

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**dr. d** · February 6th, 2023 12:07 AM

Originally Posted by Mask Rider Blac

Ang basis ng capital gains tax ay the higher between:
1) Sales price; and
2) Zonal value.
Hanggang zonal value lang ang lowest price since any price lower hindi na iku-consider ni BIR.

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yespo.
to prevent some sellers from doing what they were trying to do:avoid proper tax payment.

**Walter** · February 6th, 2023 01:25 AM

Deed of Donation is the better choice as mentioned above since there will be no issues in the future to examine whether the buyer had enough funds to acquire the property ... Deed of Sale if you think there are relatives that might cause issues in the future ... because you never know ...

**Vodka** · February 6th, 2023 01:45 PM

back then it was easier to "talk" to the BIR head to "tweak" the zonal values a bit

**boybi** · February 6th, 2023 03:01 PM

I just donated a property to my son using Deed of Donation. Pero siningil ako ng VAT dahil it's a commercial property daw.

**papi smith** · February 6th, 2023 04:51 PM

Originally Posted by boybi

I just donated a property to my son using Deed of Donation. Pero siningil ako ng VAT dahil it's a commercial property daw.

If it was DOS, may VAT pa rin kaya?

**Mask Rider Blac** · February 6th, 2023 06:29 PM

Originally Posted by boybi

I just donated a property to my son using Deed of Donation. Pero siningil ako ng VAT dahil it's a commercial property daw.

Good to know. Thanks.

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**Mask Rider Blac** · February 6th, 2023 06:35 PM

We bought a certain property (house and lot), siningil kami ng VAT kasi above threshold daw. Not sure how it went kasi the wife took charge of the transaction.
Before, when we bought a condo, may certain threshold din, above it will pay VAT.
Sorry, can't remember the exact amounts/details.

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**Ry_Tower** · February 6th, 2023 06:39 PM

Originally Posted by papi smith

If it was DOS, may VAT pa rin kaya?

Depends sa land if capital or ordinary asset. If used for business or trade like real estate agent ka, meron. Pero if personal property mo at hindi related sa business or trade mo, no VAT. Capital gains tax babayaran mo kapag capital asset.

Ordinary assets are those that fall into any of the following categories: Stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer (used somehow for business). Property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business (real estate businesses). Ito ang may VAT.

**Ry_Tower** · February 6th, 2023 06:42 PM

Originally Posted by Mask Rider Blac

We bought a certain property (house and lot), siningil kami ng VAT kasi above threshold daw. Not sure how it went kasi the wife took charge of the transaction.
Before, when we bought a condo, may certain threshold din, above it will pay VAT.
Sorry, can't remember the exact amounts/details.

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TRAIN imposed the following on VAT exemption provisions regarding real estate transactions:

a. Real properties not primarily held for sale to customers or for lease in the ordinary course of trade or business, and properties utilized for socialized housing shall be exempted from VAT.

b. Previously at Php1,919,500, TRAIN lowered the VAT exemption of residential lots to Php1,500,000. This means residential lots that were previously tax exempt (worth Php1,500,001 to Php1,919,500) are now subject to VAT. Further, beginning January 1, 2021, residential lots will no longer be qualified for VAT exemption.

c. TRAIN also lowered the VAT exemption of residential dwellings (house and lots, condominiums) from Php 3,199,200 to Php 2,500,000. This means houses and condos that were previously tax exempt (worth Php2,500,001 to Php3,199,200) are now subject to VAT. Further, effective January 1, 2021, the exemption shall be lowered again from Php2,500,000 to Php2,000,000, and every three years thereafter, the amount stated shall be adjusted to its present value using the Consumer Price Index (CPI) as published by the Philippine Statistics Authority (PSA).

d. Lease of residential unit with a monthly rental not exceeding P15,000 shall be exempted from VAT.