Many of last year’s home donations are in the form of’payable gifts’, which are given with debt or rental deposit.
If you donate with a burden, the person who received the gift is obligated to repay the debt or deposit, so you only need to pay the gift tax on the portion of the housing market excluding debt and deposit.
The person who gave the donation paid for the gift had to pay the corresponding capital gains tax because it was profited by overturning the debt, and the burden of the transfer tax was also reduced thanks to the temporary and exclusion of the transfer tax for multi-homed people, which was applied for a limited time until the end of June last year.
In this way, the tax burden is reduced with a burdened gift, and even if a few years later, parents repay the debt or sign a false lease between parents and children, the gaze of the National Tax Service cannot be avoided.
Go Gyeong-hee, a tax accountant who specializes in inheritance and gift tax (Gwanggyo Tax Firm), said on the 6th that “In the beginning of the year, the biggest interest of multi-homeowners in Gangnam is donation,” and “There are many parents of multi-homed people who would give gifts to their children after paying a large transfer tax.”
The late tax attorney added, “Because the National Tax Service manages all of the donations with a burden, you can think that all evasions will be revealed.”
“If you try to reduce the gift tax by using debt or lease contracts, it will be 100% revealed in the post management of the debt,” said Joon-O Park (tax accountant) of Samsung Life’s Family Office. “If the gift was paid at a cost, the person who received the gift should repay and prove self-repayment. If not, the donor will eventually have to pay less tax.”
This is because the National Tax Service monitors all donations with a burden through the debt follow-up management system.
Upon receipt of the donation report, the tax office employee enters all the details of the debt and lease contracts associated with the donation house into the debt follow-up management system.
When the maturity of a debt or lease contract arrives, the system makes it aware of the tax authorities and asks the gift taxpayer to clarify whether the debt or lease deposit has been repaid and the source of the repayment fund. If the recipient of the gift, i.e. the recipient, fails to clarify the source of the reimbursement funds, the less paid gift tax will be collected and additional tax will be charged.
Even if early repayment of a mortgage loan with a very long maturity is difficult to avoid the eyes of the National Tax Service. This is because the data on the establishment of the root mortgage are notified to the National Tax Service from the Supreme Court. When the root mortgage of a house registered in the debt follow-up system is released, the IRS asks the recipient to explain the source of the debt repayment fund.
If the debt has a long maturity, it may be checked midway whether the donor is paying interest on its own.
On the other hand, housing donations declined after the gift-acquisition tax rose sharply to 12% in August last year, but increased to about 10,000 cases per month from November.
As housing prices continue to rise, many multi-homed people say that it is better to give gifts to their children even after paying the acquisition tax and gift tax.
In order to give a gift this year, it is advantageous for multi-homeowners to complete the gift before June 1, the base date for imposing the possession tax.