AskGuru Q&A Community

Make confident property decisions with advice from our experts

Asked by
I am a foreigner who inherited a property in Ipoh valued at $620K. I have a interested buyer who is willing to wait till the 6th year where I have to pay a 10% tax. My question is if this is a direct deal with buyer can I sell the house at any price much lower like $520K or $480K in order to reduce the 10% tax part? Are there any hidden costs I should be aware of?
0 •
620 views
Upvote Upvoted
Want this question answered?
Get faster responses from our experts by upvoting.
Be the first to upvote this question.

2 Answers

Morgan Koh
Replied
Hi,
Actually the tax you mentioned is RPGT(Real Property Gain Tax).
FYI, If you sold a property with no benefit, that will be no tax charged toward vendor(seller).
it's No gain no tax basis.

Example: Purchase price as RM620,000.00
after 3 years, you sold at RM620,000.00. In this scenario, there is no tax at all.

another example: if purchase price as RM620,000.00. after 5 years you sold at RM650,000.00. You will need to pay 10% of RPGT base on the different sum, mean RM30,000 x 10% = RM3,000 ONLY.

hope above info help you.
Best Regards,
Morgan Koh (REN06063)
Mobile: 016-6968923  Read More
0
Upvote Upvoted
  • WT
    Replied
    Hi Morgan,

    Thanks for the prompt reply. As I have mentioned, the property was transferred to me after my father passed on in 2019. Since I do not know the purchase price how do I calculate the RPGT?

    Thanks.
Kim Chia
Replied
Hello,
I reckon that you seek a legal advise as is an inheritance property.

Regards
Kim Chia Read More
0
Upvote Upvoted

Still looking for answers?

Get advice from our community of experts

Ask Your Question
Previously Asked Questions