How are tax payouts calculated on the sale of real estate?

When selling a property, the buyer and seller have a number of obligations regarding paying taxes. Tax calculation procedures for the sale of real estate vary depending on factors such as the cost of sale, property tax, VAT and income tax. In this article, we will explain in detail how tax payouts are calculated on the sale of real estate.
Tax Calculation Procedures for the Sale of Real Estate
Tax calculation procedures for the sale of real estate vary depending on factors such as the cost of sale, property tax, VAT and income tax. Below you can find detailed explanations of these factors:
Sale Price: When the real estate sale transaction takes place, tax is calculated on the determined price. The sale price varies depending on the market value of the real estate and other factors. The taxes that the buyer and seller must pay are calculated on the sale price.
Property Tax: Property tax is a tax that the property owner pays for the property that he owns during the year. Property tax is calculated according to the characteristics, size, purpose of use and value of the region where the real estate is located. When the real estate sale transaction takes place, the seller is obliged to pay real estate tax because the real estate tax is on the seller.
Value Added Tax (VAT): The real estate sale transaction is subject to VAT. The VAT rate for the sale of real estate varies according to the region where the real estate is located, the purpose of use and its value. Generally, the VAT rate is applied as 18%.
Income Tax: Gains from the sale of real estate are subject to income tax. Income tax varies according to the amount of income received. The profit obtained by the seller is calculated according to the difference between the sale price of the real estate and the cost price of the real estate. Dec. The cost price of the real estate covers expenses such as the cost of acquiring the real estate, maintenance and repair costs, property tax.
Examples of Calculating Taxes on the Sale of Real Estate
In order to better understand how tax calculation procedures are performed in the sale of real estate, you can examine the following examples:
Example 1: Let the market value of a house be 500,000 TL. Let the property tax on the house be 2.000 TL per year. Let the sale price of the house be 600.000 TL. Let the VAT rate be 18% and the seller's profit be 100.000 TL.
Property tax that the seller must pay: 2.000 TL
VAT that the buyer and seller must pay: 600.000 TL x 18% = 108.000 TL
Income tax that the seller must pay on the profit he has earned: 100.000 TL x 35% = 35.000 TL
Example 2: Let the market value of a plot be 1.000.000 TL. Let the land property tax be 5.000 TL per Decile. Let the sale price of the plot be 1.200.000 TL. Let the VAT rate be 18% and the seller's profit be 200.000 TL.
Property tax that the seller must pay: 5.000 TL
VAT that the buyer and seller must pay: 1.200.000 TL x 18% = 216.000 TL
Income tax that the seller must pay on the profit he has earned: 200.000 TL x 35% = 70.000 TL
How are Tax Payments Paid on the Sale of Real Estate?
Tax payments on the sale of real estate are paid to the relevant tax office. Buyer and seller can pay their taxes via internet banking instead of going to the tax office. In order for tax payments to be paid, the buyer and seller must be registered with the tax office.
The taxes to be paid during the sale of the property are calculated after the determination of the sale price. Tax calculation operations are usually performed by a tax consultant or financial advisor who is understood by the buyer and seller. Thus, the correct calculation of taxes to be paid on the sale of real estate is ensured.
As a result, the tax calculation procedures for the sale of real estate vary depending on factors such as the sale price, property tax, VAT and income tax. The calculation of taxes payable on the sale of real estate should be carried out by tax consultants or financial advisors. The tax payments of the buyer and seller can be paid to the relevant tax office via Internet banking.