HELP! Legal assistance

[Bry]

Here's the problem:

My parents are going to give me a condo unit for my 21st birthday. They say na malaki ang magagstos sa paglipat ng pangalan, a couple of hundred thousand daw. I'm just wondering if there is any way around this? My girlfriend suggested that they just 'sell' it to me for a cheap price and then I'll just return the money to them afterwards. Will this work?

Anyways, I'm just hoping that someone here can help me out. Sayang din kasi.


Thanks in advance

[111prez]

bry -- based on what you are saying above, i assume that the condo is presently registered in the name of your parents and they are planning to transfer the condo certificate of title in your name. tama ba?

there are a number of ways to transfer a property and each method has its own tax consequences.

if you want ownership transferred, there is outright sale or donation

if you dont mind the ownership in the name of your parents but you are granted use, then there is usufruct or lease

you want a more (and very) complicated way. you can do a property for share swap. the transfer itself can be tax free but your ownership will be indirect only

"selling it for a cheap" price may not cut it since any taxes due will be based on the selling price or the zonal valuation, whichever is higher. you can only mitigate the taxes here

[Bry]

Yes, I want the ownership to be transfered to me.

I'm leaning towards getting it donated, though I am open to suggestions.

[boybi]

meron pa rin bang tax kapag donation?

[111prez]

at this stage, i believe that the best alternative is to make the transfer of the property as tax efficient as possible (translation: pay the lowest tax legally possible while getting the CTC transferred in your name)

i suggest that you contact your family or company cpa and have him compute it

i suggest that you use the zonal valuation as a tax base. for donation, the brackets are in the tax code. whichever is the most tax efficient, then i suggest that you do it this way.

there are further steps (legal ito and no under the table, bribery or such things. i do not condone those actions by the way) which you can do and i have done for a client but in this case, you will have to PM me already

good luck

[Bry]

Kindly PM me your cel #, 111prez. I'll have my parents call you asap. Thanks!

[NightRock]

I think the good solution is Donation Vivos.. since TAX is much cheaper then Deed Of Sale.

[BoEinG_747]

sir sorry sa tanong wla ako alam masyado dito..

pag ganyan bentahan ba may porsiento ang attorney
(kung magkano price ng property ay may certain percentage ang attorney parang attorney's fee?)

at may tax ba doon sa value ng property ? (sa pag ka unawa ko )

[NightRock]

sir sorry sa tanong wla ako alam masyado dito..

pag ganyan bentahan ba may porsiento ang attorney
(kung magkano price ng property ay may certain percentage ang attorney parang attorney's fee?)

at may tax ba doon sa value ng property ? (sa pag ka unawa ko )

Depende sa Atty. kung may kilala ka mas OK wala ng bayad stamp nila hehehe pero kung basta ka lang lalapit sa mga lawyer dati sabi sakin 10% daw ng value ng property.. kanya kanyang presyo yan hindi ko lang alam kung magkano talaga ang legal.

[BoEinG_747]

Depende sa Atty. kung may kilala ka mas OK wala ng bayad stamp nila hehehe pero kung basta ka lang lalapit sa mga lawyer dati sabi sakin 10% daw ng value ng property.. kanya kanyang presyo yan hindi ko lang alam kung magkano talaga ang legal.

exactly the same nag yari sa atin ..charge lang niya ako 10% at pinayuhan nya lang kami na mura lang ilagay ang price..
kasi d naman iba ang nag bentahan..

sir night rock thank you ..

[111prez]

to BoEinG_747/NightRock -- concerning the lawyer's fees, the integrated bar of the philippines has a schedule of legal fees. but at the end of the day, it really depends on the agreement with the client. some lawyers will charge for the time spent based on some peso value per hour of work. others may charge a project fee. while most tax lawyers will charge based on a percentage of the tax savings given to the client.

to NightRock -- yep, its a donation inter vivos or what is known commonly as donation among the living. tax is not necessarily cheaper. you have to check the figures and values/tax base to be sure. but if you are comparing donor's tax vis-a-vis estate tax (as a commonly used tax planning tool) then yes, donor's tax is lower and more tax efficient. tax planning is a seldom used and people find out only too late about its benefits.

to boybi - yep, may tax ang donation. the only donation that is not taxed is a donation to charity. you can use this for tax deduction instead but subject to certain conditions and limits

to bry -- i will just PM you my cell number but siguro mga monday nalang

[BoEinG_747]

thanks a lot sir 111prez..,,,,for the inputs

[111prez]

thanks a lot sir 111prez..,,,,for the inputs

bro -- no problem

[yebo]

answer: deed of sale where the selling price is just the same or lower than the acquisition cost. result: no capital gains tax to be paid by your parents. you only need to pay the fees for transferring the title to your name. this can be done, like "sacrifice sale" of any real property for quick cash. ano ba paki ng gobyerno kung gusto ibenta sa iyo ng parents mo at a cheap price. they can even sell it to you for P1 if they want to.

as for the money, no money involved between your parents and you. so no cash involved, signatures lang yan sa deed of sale.

[111prez]

answer: deed of sale where the selling price is just the same or lower than the acquisition cost. result: no capital gains tax to be paid by your parents. you only need to pay the fees for transferring the title to your name. this can be done, like "sacrifice sale" of any real property for quick cash. ano ba paki ng gobyerno kung gusto ibenta sa iyo ng parents mo at a cheap price. they can even sell it to you for P1 if they want to.

as for the money, no money involved between your parents and you. so no cash involved, signatures lang yan sa deed of sale.

sorry but i must disagree.

it is not always acquisition cost that will determine whether CGT is due. its either selling price or zonal valuation whichever is higher

a very low selling price will invite BIR investigation and i doubt if we would like that to happen. sell it for P1 and you will only unnecessarily invite questioning. in this case, if you do this, then the BIR will consider this a donation and you will most likely get hit by a higher tax payment.

you can better manage your tax matters but getting the right figures and knowing how the BIR determines the tax

i suggest that you distinguish a sale of real estate from a sale of personal / movable property. if you sell a car for P1 (assuming it is fully depreciated with zero book value) it does not matter. but real estate property does not depreciate thus the big big difference.

[111prez]

besides, its not as simple as a signature on a deed of sale between you and your parents.

to transfer the registration, you need a tax clearance as well as clearances from the local government unit for the real estate tax clearance. the deed of sale must also be notarized and the taxes paid on or before the 10th of the month. thus, signing and notarization of the deed of sale should also be managed so that you do not unnecessarily pay any penalties

[qman]

Matagal ko ng tapos bayaran ang isang property at kelan ko lang nakuha ang deed of sale at TCT, tinamad ako ng matagal pumunta sa real state office ng kinunan ko. Ano pa ang dapat kong gawin i mean me babayaran pa ba ako?

thanks sa mga mag re reply

[NightRock]

Matagal ko ng tapos bayaran ang isang property at kelan ko lang nakuha ang deed of sale at TCT, tinamad ako ng matagal pumunta sa real state office ng kinunan ko. Ano pa ang dapat kong gawin i mean me babayaran pa ba ako?

thanks sa mga mag re reply

Wala kana yatang babayaran kung nasa NAME mo na ang TCT it means bayad na lahat ng tax nyan ng i transfer sayo.. Bale yearly property tax nalang babayaran mo Amilyar lang

[boybi]

baka ang ibig sabihin ni qman, kakakuha palang nya nung signed deed of sale and TCT na nasa orig owner pa yung name. sya na ang maglalakad nung transfer sa name.

meron bang expiration yung deed of sale?

[111prez]

to qman -- if you were issued a tax clearance to effect change in registered owner or issuance of a new TCT, then your next step is the office of the register of deeds where the real estate property is located. doon medyo matatagalan unless tutukan mo. the TCT forms are accountable forms and only the land registration authority issues this. i know this kasi when i got a lot some years back, doon lang ako natagalan kasi nagkulang yung TCT forms nila. i got my TCT only after 2 months from the time i submitted the tax clearances. no no sa akin yung bribery because i am a christian. however, i just befriend them, talk to them and be patient. or if you have a broker, then closely coordinate with your broker

to boybi -- whether may expiration or not ang deed of sale really depends on the terms and conditions of the deed itself. but if it is silent, then the law on obligations and contracts provides for the legal grounds for the expiration of a contract such as fulfillment of the terms and conditions therein. for example, if you sell a car and you delivered it already and got the money in return, the deed is deemed extinguished or expired or terminated unless there are some residual and surviving warranty provisions in which case, the deed continues to survive for the duration of the agreed period.

teka, legal clinic na ata ito ah, hehehehe

di bale, fellow tsikoteers naman