Many times, when the father is old, he wants to transfer his house to his children. Generally speaking, there are two ways to transfer the house property certificate between the father and the son, one is the donation transfer, the other is the sale transfer. So how to change the name of real estate father and son? What are the ways to transfer property to children?
1、 Transfer of ownership by way of transfer, that is, transfer of ownership by way of sale in accordance with the transaction procedures.
There are three main expenses of house transaction: business tax, personal income tax and deed tax. If the real estate is less than five years old, it needs to pay business tax and personal tax, as well as deed tax and property right transfer registration fee.
2、 In the way of donation for transfer, the donation notarization should be carried out first, then the house appraisal and appraisal should be carried out, and finally the transfer should be carried out.
The individual income tax, deed tax and notarization fee need to be paid for the donation transfer. There is no business tax for the donation transfer, because the donation is considered as the act of receiving the donation free of charge, so the donee needs to pay personal income tax, and at the same time, the donation transfer also needs to pay notarization fee.
3、 Transfer of ownership by way of inheritance, but this situation needs to happen in the case of the death of one of the parents, is not very common.
Compared with the sale and gift, the tax expense of inheritance transfer is the lowest, because the inherited real estate has no business tax, personal tax and deed tax, and only needs to pay the notarization fee. Heirs with the will for inheritance notarization, with the inheritance certificate to the housing management department for transfer name can be.
The cost comparison of these transfer methods is suggested as follows:
1、 Inheritance and transfer is the most cost-effective: because China has not yet imposed inheritance tax, only notarization fee is required to handle inheritance and transfer, and other taxes are free. Because the way of inheritance can only be realized when one of the parents dies, many parents do not consider this way for the time being. Of course, there are also parents who are far away and intend to write a will to leave the property to their children.
2、 Property donation within five years can save more money: according to the national policy, parents who give property to their children are exempt from business tax and personal income tax, and only pay 2% of the total price of the house notarization fee and 1.5% of the deed tax. However, if there is no need to pay notarization fee for the transfer of ownership, in addition to the deed tax, the following taxes should also be paid:
1. Business tax should be levied when the house is purchased for less than five years and the house with an area of more than 140 square meters is sold and transferred.
2. If the house has been purchased for less than five years or the house has been purchased for five years, but it is not the only house of the family, the individual income tax shall be levied when the house is sold and transferred.
3、 According to the national policy, if the property has been purchased for more than five years, the business tax and personal income tax will be exempted, and only the deed tax will be paid, which is a fair fee less than the donation transfer.
It can be seen that the choice of transfer depends on the situation of the house. For a house that has been purchased for more than five years, it is exempt from business tax when it is resold. If the suite is the only house in the family, it is not only free from business tax, but also free from personal income tax.