How to process the sale of a home in 2024 on a tax return.

If you sold your real estate during 2023, how do you reflect that transaction on your 2024 return?

If you sold your property during 2023, you need to report it on your 2024 income tax return, which begins April 3 and ends July 1. Most of the income you received must be reported on your tax return. One of them is an increase in assets due to the sale of a home. Depending on the situation, your age and the amount received, you need to apply the personal income tax withholding rate. We'll tell you all about selling real estate on your income tax return.

The first thing you should do to find out the personal income tax withholding rate is to calculate the increase in the value of the property received as a result of the transaction. To do this, subtract the purchase price of the home from the transfer price of the property, which is the sale price. The property transfer price refers to the net gain you received from the sale of your property. This should include: the sale price of the house, expenses related to the transaction such as notary fees, taxes you had to pay in the transaction, real estate agent's commission, if any. The acquisition cost is the amount spent on the purchase of the home from the time of purchase to the time of sale. Some of the things to look at are the purchase price of the home, renovations, costs and taxes associated with the purchase, and the mortgage.

How is the sale of real estate taxed on my income tax return? In the case of a loss-making transaction, you do not need to apply any tax withholding. If, however, you made a profit on the sale, you need to apply one of the following personal income tax rates that apply in 2024: up to €6,000 profit - 19%, between €6,000 and €50,000 profit - 21%, between €50,000 and €200,000 profit - 23%, between €200,000 and €300,000 profit - 27%, above €300,000 profit - 28%.

In which column of the declaration should the sale of real estate be entered? The sale of real estate results in a gain or loss. This data must be reported on page 15 of the return. In column 1817, you must indicate the type of property, in this case, a dwelling. In addition, in columns 1819-1821 you must indicate the cadastral number. You must then indicate the type of transaction by checking box 1822 if it is a chargeable transfer, such as a sale or exchange, or box 1823 if it is a gratuitous transfer, such as a donation. You must also fill in the dates and values of the transfer and acquisition as follows: the value of the transfer is reported in box 1826, and the value of the acquisition is reported in box 1830.

Who is exempt from the obligation to declare the sale of an apartment? If you sell your apartment, you must declare the occurrence of the gain or loss on your tax return. If you sell your permanent home, you may be exempt from income tax in certain cases: sale of a permanent home by persons over 65 years of age or by persons who are severely or highly dependent, sale of a permanent home to reinvest the proceeds in the purchase of another home.

How much do I need to pay to the tax office for selling my house? A tax payment will only be required if there is a gain on the sale, but even if you lose money, you must report the transaction. The amount of the tax payment will depend on the gain from the sale and the personal income tax rates on your 2024 tax return.