Dishonest real estate transaction

Buyers who purchase property at a lower cost, will pay the taxThe Federal Tax Service in collaboration with the Ministry of Finance has figured out how to make the property market more transparent and to improve tax collection. The recipe is unusual. For starters, officials propose to set the maximum allowable discount (in relation to the cadastral value of real estate) to sell the apartments. And then to oblige buyers to pay personal income tax if they purchased a property on an obviously low price.
The developers of the law believe that the “notoriously low” price can be called in if it differs by 20-30% of the cadastral value of the object. Recall that the cadastral value today is as close to a market.

So if an object with the cadastral value of 7 000 000 dollars according to the contract was purchased for 4 $ 500,000 , the buyer will have to pay tax. To count his plan from the difference cadastral and actual figures. In our case it is 2 500 000 dollars and, accordingly, $ 325,000 in the form of tax deductions.

Lawmakers expect that buyers because of the presence of additional spending, just will not communicate with sellers that are trying to avoid taxes and to impose its conditions of the contract. Well, if you accept these conditions, compensate the Treasury tax losses out of pocket.

At the moment this legislative product only passes through the stage of improvements, and when he will be on the tables of deputies, is still unknown. Experts, however, are skeptical and say that such a strange proposal is unlikely to be supported.