Gifted and inherited properties last quarter increased 12 percent and 4.3 percent year-on-year to 15,481 and 14,952 units respectively, government data showed yesterday, as people appeared to be undeterred by stricter property tax terms while becoming more active in asset allocations.
The figures show a seven-year high following the introduction of combined property taxes, data on the Ministry of the Interior’s Web site showed.
The rise appears to be a result of increased financial planning by people with multiple homes as a way to help them cope with selective credit controls and rising inflationary pressures, Great Home Realty Co (大家房屋) head researcher Mandy Lang (郎美囡) said.
Photo: Hsu Yi-ping, Taipei Times
Tightened property tax terms should result in higher taxes when people sell inherited and gifted properties, although people regardless seem to be pressing ahead with asset allocations, especially those with multiple homes, Lang said.
Owners of multiple homes can bypass stricter lending terms by gifting properties to spouses or children who qualify for higher house loans, Lang said.
Gifted and inherited properties could also allow first-time property sellers the choice to apply a 10 percent tax rate on transaction gains, benefits usually not available to multiple home sellers.
Multiple home sellers must declare capital gains in line with income tax rules and pay taxes accordingly.
Gifted properties are most common in Taipei, New Taipei City and Taoyuan, but are not as popular in southern Taiwan, Lang said, adding that people in southern Taiwan are less comfortable with inheritance planning.
H&B Realty Co (住商不動產) research head Jessica Hsu (徐佳馨) said that people can file for tax relief by buying a new property within a certain period after selling an old one.
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