Can Capital Gain Tax be stipulated to be paid by the buyer instead of the seller?

josephamoyo

josephamoyo

Arresto Menor

Posts : 6
Join date : 29/08/2010
Age : 42

I have a town house unit under pag-ibig with a 20year term. i already paid 36months amounting to 227k. Improvements where added. I have a buyer & we agreed to a deal of 300Thousand & my current loan will be assumed by him under pag-ibig. Capita Gain Tax would cost 18K which is expensive. On our agreement we included the furnitures amounting to more or less 100Thousand. Can I indicated on our Contract to Sell that the Capital Gain Tax be shouldered by the Buyer? Thank you so much.

zulfikarl

zulfikarl

lawyer

Posts : 98
Join date : 31/07/2010
Age : 54
Location : cebu

The practice of stipulating that the Capital Gains Tax be shouldered by the buyer is a prevalent practice in the real estate industry. The Constitution guarantees that people are free to agree on the terms and conditions of their contract provided that it is not contrary to law, morals and public policy.

Such stipulation is perfectly legal.

Can Capital Gain Tax be stipulated to be paid by the buyer instead of the seller?

1 Can Capital Gain Tax be stipulated to be paid by the buyer instead of the seller? Sun Aug 29, 2010 6:52 pm

josephamoyo

2 Re: Can Capital Gain Tax be stipulated to be paid by the buyer instead of the seller? Sun Aug 29, 2010 11:21 pm

zulfikarl