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How to Declare the Sale of a Home in the 2024 Income Tax Return

How to Declare the Sale of a Home in the 2024 Income Tax Return - How to Declare the Sale of a Home in the 2024 Income Tax Return

Some doubts regarding the declaration of a property sale may arise when settling accounts with the Treasury. Knowing whether or not the operation is subject to taxation, whether we must declare in the event of losses or how to do so are essential questions we should know and that we will try to resolve below.

Is it mandatory to declare the sale of a home?

In most cases, the Treasury must be informed of the operation, regardless of whether or not there has been an increase in assets. That does not mean that you have to pay taxes. We won't have to do it in specific cases:

• That the operation has entailed losses.
• That the profit obtained gets invested in the purchase of another house.
• When the sellers are over 65 years of age.

How to declare the sale of a home

To declare the sale of a home in the income tax return, we must calculate the increase in assets obtained or the losses derived from the operation. The calculation is the difference between two basic concepts:

Transfer value of the home: it is the net gain, deducting the expenses associated with the operation (taxes, commissions, etc.) from the sale price.
Acquisition value: sum of the home cost plus expenses derived from the mortgage, acquisition taxes and investments made in renovations.

Steps to declare the sale of a home

We'll have to fill out several boxes on the tax return form. They are in the section dedicated to capital gains or losses:

• Box 1817: the property type must be specified, in this case, housing.
• Boxes 1819 to 1821: cadastral reference of the property.
• Boxes 1822 and 1823 indicate whether the operation has been a sale, an exchange or a donation.
• Boxes 1825 and 1825: the date of purchase and sale of the home.
• Box 1826: the transmission value.
• Boxes 1827 to 1829: in them, the Treasury asks if we'll use the profit for any actions that may imply exemption from tax on the sale.
• Box 1830: indicate the acquisition value.

It is fundamental to fill them all in so that the program correctly calculates the tax in case there is an increase in assets. The result appears in boxes 1831, 1832 and 1833.

What's the tax for selling a house?

If the result is positive, if there has been an increase in assets, the taxation will depend on that gain. For the calculation, there are several sections:

• Up to €6,000 profit: 19%
• Between €6,000 and €50,000: 21%
• Between €50,000 and €200,000: 23%
• Between €200,000 and €300,000: 27%
• More than €300,000: 28%

The application is progressive. That is to say, if the profit is €30,000, 19% will be applied to the first €6,000 and 21% to the remaining €24,000.

If you have sold a home, keep all this in mind. And, if you are thinking of putting a property on the market, you can do so under the best conditions at List your property for free and reach an international audience.

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