Land Donation questions

[Bochekokik]

Mods, pakilipat na lang kung mali ang pinaglagyan ko ng post
To all Tsikoteers na expert sa Real Estate, paki comment naman sa mga tanong ko.

Last week umuwi kami ng province, dahil sa Land Donation para sa wife ko. May tiyahin siya na old maid, at gustong ipamana yung residential lot (with house) sa kanilang magkakapatid. Hindi naman malaki ang area (approx 600sqm, nasa subdivision ang location) Ito yung mga ginawa na so far.
1. Nag execute ng Deed of Donation, naka notarized na sa lawyer
2. Pina compute yung land taxes (2002 pa kasi yung last na payment nila)

Questions
1. May time limit ba para maitransfer yung Land Title mula sa pangalan ng Tiyahin lipat sa pangalan ng magkakapatid? May nabasa ako somewhere na may multa pag di agad naipa transfer ang Title after mag execute ng Deed of Donation. Can someone help clarify.
2. Aside from the land tax na dapat bayaran muna bago magpatransfer ng title, ano pa ang kailangan bayaran?
3. Anything else that needs to be done?

Thanks in advance

[fortuner13]

asise from #2 na land tax ., I think may babayaran ka pa sa BIR

[Bochekokik]

Salamat sa reply.
May babayaran pa sa BIR something like Donation Tax.
Ipinalakad na lang ni wifey sa kabarkada nya na nagtratrabaho din dun sa law firm na gumawa ng deed of donation. Ongoing process pa sa ngayon at unang babayaran muna ang land taxes. One step at a time lang, hindi naman rush.

[ChoyJo]

Nahalungkat ko lang ito.. Ano mas mainam sa Pamana nang Magulang sa mga anak? - Deed of Sale or Deed of Donation?

[hinlog]

Nahalungkat ko lang ito.. Ano mas mainam sa Pamana nang Magulang sa mga anak? - Deed of Sale or Deed of Donation?

IMHO, kung walang proof of income yung anak, then should be the latter. On the other side, given the 2 options, I will opt for DOS path, mas malinis ang proseso.

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[dr. d]

Nahalungkat ko lang ito.. Ano mas mainam sa Pamana nang Magulang sa mga anak? - Deed of Sale or Deed of Donation?

back in the day, we did deed of donation. dad did all the legwork, as he had time to burn.
check with city hall, po, because the rules, i.e., taxes and fees, may have changed after two decades.

[viper888]

Both options will incur a 6% tax on the declared value since the tax for Capital Gains is 6% and the tax for Donation is 6%

[Walter]

Nahalungkat ko lang ito.. Ano mas mainam sa Pamana nang Magulang sa mga anak? - Deed of Sale or Deed of Donation?

The Deed of Sale loophole has been fixed by the TRAIN law ... both will cost the same 6% tax ... If it's ancestral home, there are some tax remedies ...

[ChoyJo]

The Deed of Sale loophole has been fixed by the TRAIN law ... both will cost the same 6% tax ... If it's ancestral home, there are some tax remedies ...

May nakapagsabi kasi sa Erpat ko na mas okay daw Deed of Sale kasi pwede ibaba ang presyo tutal ipapamana naman daw sa anak at hindi naman ibang tao ang pagbibigyan.. Gaano ba kababa ang pwede kung sakali? Nagpa-plano na din kasi mga magulang ko na maipasa sa aming magkakapatid Pamana nila kasi nagkaka-edad na din sila..

[papi smith]

Sa tax na babayaran pareho, ewan ko lang sa proceso at requirements, baka dun magkatalo

[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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[dr. d]

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]

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]

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

[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.

[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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[Ry_Tower]

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.

[papi smith]

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

[boybi]

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

Nag donate ako to my son and I’m not a property developer, pinagbayad ako ng VAT because commercial property daw yung lot.

[papi smith]

Nag donate ako to my son and I’m not a property developer, pinagbayad ako ng VAT because commercial property daw yung lot.

Oh sorry, I was referring to Ry Tower's reply which applies to sales by property developers.

As for donations, I'm not really sure. Iniisip ko lang na kung sale, baka walang VAT, but then medyo mahirap din ma question ng BIR if the recipient is still so young to have the money to acquire a commercial lot. Unless ang allowance nya kayang bumili talaga [emoji3526] Tax free naman ang allowance hehe.