Praise tax exemption in exculpatory residential apartment

The most common absolute exemption from appreciation tax is an exemption on the sale of a qualifying residential apartment.

The cumulative conditions for obtaining the exemption:

A. The apartment in question is the seller’s only apartment. A residential apartment is a residence, a dwelling house, a place where people live – as its usual meaning in human language.

B. The construction of the apartment has been completely completed and the apartment is habitable.

C. The apartment is owned by the seller and is not owned by a corporation, such as a limited company.

D. The apartment is not a ‘business inventory’, meaning that the seller is not a real estate developer or contractor.

E. In the four years prior to the sale, the apartment was actually used for residence or at least 80% of the period since the construction of the apartment was completed. Meaning that the apartment was not used as a model business. I will note that the test for an apartment that is intended by nature for residence is an objective test.

F. A cooling-off period has passed since the apartment was purchased or received as a gift.

G. The apartment has no building rights beyond the ceiling allowed by law.
When the seller is entitled to an exemption from appreciation tax, there is no relevance for all the expenses or deductions they were entitled to from income tax.

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