Check Real Estate Taxes by Type and Find Tax-Saving Methods

1. Acquisition Stage - Acquisition Tax Check Points

• The first tax to check when acquiring real estate is the acquisition tax.
• Acquisition tax rates differ depending on the type, price, and purpose of the property, so accurate classification is essential.

2. Holding Stage - Property Tax & Comprehensive Real Estate Tax Check Points

• Property tax is assessed based on ownership as of June 1 each year, so check the holding date carefully.
• Changes in the officially assessed value directly affect the tax burden.
• As the number of homes held increases, you also need to evaluate exposure to comprehensive real estate tax.

3. Transfer Stage - Capital Gains Tax Check Points

• Capital gains tax is the key tax on sale, and the holding period is especially important.
• Meeting the conditions for the long-term holding special deduction is a core tax-saving point.
• Always check the single-household/single-home exemption requirements, including the exceptions.

4. Inheritance Stage - Inheritance Tax Check Points

• The real estate valuation as of the date inheritance commences forms the base for inheritance tax.
• Taxes can vary significantly depending on the valuation method used (market price, appraisal value, comparable sale price, etc.).
• When multiple inheritance assets are involved, the division method can also change the tax savings.

5. Gift Stage - Gift Tax Check Points

• Gifting real estate among family members is often more tax-advantageous than a sale, but a side-by-side comparison is essential.
• Check the gift deduction limits and the applicable recipients (spouse, children, parents) first.