Transfer of Land Title

[DeathRow]

I have a similar question. Maki-ride nalang ako dito instead of creating a new thread:

Transferring of title from (living) parents to child - the only method is the donation method? What's the most cheapest way?

Thanks in advanced

* double posted *

[Walter]

Sell it to the child / children.

[boybi]

Yung capital gains depende sa negotiation kung sino ang magbabayad. Usually pag tinawaran ng buyer yung price, sasabihin ng seller yung buyer nalang mag shoulder ng capital gains tax.

[garfield_08]

I have a similar question. Maki-ride nalang ako dito instead of creating a new thread:

Transferring of title from (living) parents to child - the only method is the donation method? What's the most cheapest way?

Thanks in advanced

If the property was donated to the child, BIR will base the donor's tax and doc stamp similar to a deed of sale (6% + 1.5%) since the basis of market value will be the zonal valuation (which is usually higher than the assessor's market value). Transferring by virtue of sale only presents an option for computation, since the sale is not an arm's-length transaction because it will normally be below or near the assessor's market value, resulting to the BIR still using the zonal value as basis for computation. If the sale price is higher than zonal value, then it will be the basis for computation.

In such cases where the Donor has no blood relation to the Donee, the Donor's tax is computed at 30% of the Market value.

HTH.

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I have a similar question. Maki-ride nalang ako dito instead of creating a new thread:

Transferring of title from (living) parents to child - the only method is the donation method? What's the most cheapest way?

Thanks in advanced

If the property was donated to the child, BIR will base the donor's tax and doc stamp similar to a deed of sale (6% + 1.5%) since the basis of market value will be the zonal valuation (which is usually higher than the assessor's market value). Transferring by virtue of sale only presents an option for computation, since the sale is not an arm's-length transaction because it will normally be below or near the assessor's market value, resulting to the BIR still using the zonal value as basis for computation. If the sale price is higher than zonal value, then it will be the basis for computation.

In such cases where the Donor has no blood relation to the Donee, the Donor's tax is computed at 30% of the Market value.

HTH.

[Juan Martinez]

I have a similar question. Maki-ride nalang ako dito instead of creating a new thread:

Transferring of title from (living) parents to child - the only method is the donation method? What's the most cheapest way?

Thanks in advanced

* double posted *

sale is better than donation, apart from the tax implications (which have been amply discussed by the posts above), there is NO collation in sale.
Collation is the return of the donations made by the deceased to his hereditary estate either by adding mathematically the value of said donation or by actually bringing them back to the estate. It takes place when there are compulsory heirs to determine the legitime and the free portion so that there will be equality of distribution among them.
kung gustong mong isuli yung na- donate na property sa iyo because there are compulsory heirs whose legitimates are prejudiced by reason of the donation, sige donation gawin nyo.

[JJ All Day]

Saan yung property?
Magkano mo bibilhin?
Kanino nakapangalan? Dapat sa seller
Magkano assessed value ng land? ng improvement?
Kelan yung last payment ng real estate tax (for the land and for the improvement)?

[Juan Martinez]

per se, donation vs. sale? this is no brainer. of course, sale.

[DeathRow]

Zonal value is calculated like this?

Whatever is applicable here: Zonal Values - Bureau of Internal Revenue

Corresponding ZV/SQ.M. multiply by the Lot area? (Size is F: 200 / L: 300) = Zonal Value

The proceed to calculate the:

CAPITAL GAINS TAX (6%)
DOCUMENTARY STAMP TAX (1.5%)
TRANSFER TAX (0.5%)
REGISTRATION FEE (0.25%)

?

[eminem6480]

Just wanted to update you guys:

Ok na lahat ng documents ko at in the process of transferring the title to me and wifey. Based lahat ng expenses sa market value (PhP2.2 M) ng land with improvements coming from Assessor's Office.

Ito mga expenses ko:

Notarization: Php5000
CGT (6%) : Php131,634
DST (1.5%): Php32,909
Transfer Tax (.00825): Php18,100
stamps and certified true copy of docs (~Php2-3000)

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Just wanted to update you guys:

Ok na lahat ng documents ko at in the process of transferring the title to me and wifey. Based lahat ng expenses sa market value (PhP2.2 M) ng land with improvements coming from Assessor's Office.

Ito mga expenses ko:

Notarization: Php5000
CGT (6%) : Php131,634
DST (1.5%): Php32,909
Transfer Tax (.00825): Php18,100
stamps and certified true copy of docs (~Php2-3000)

[leodawesome]

Also pag bigay sa iyo ng tct and tax declaration make sure na verified mo ito sa LRA and RD, at walang arrears ang real estate taxes. Baka mamya yan may annotations (liens and mortgages, sold already to another party, etc) pala ang original title tapos yung owner's copy wala. Kaya dapat kukuha ka ng certified true copy sa LRA ng title kasi andun ang current annotations if any at wala sa owner's copy.

Sorry noob question. What is this LRA? I'm eyeing a house and lot also in bulacan but wanted to check on the status of real estate taxes and annotations if any. Para kasing daming umaayaw dun sa property na buyers eh kaya na intriga ako.