Tax on civil law transactions (PCC) is regulated by the Act of September 9, 2000. It covers such legal transactions as sales and exchange agreements of goods and property, loan agreements, donation agreements, endowment agreements, inheritance division agreements and establishment of mortgages. Valid when purchasing an apartment from the secondary market. It is calculated and collected by the notary.
What is the PCC tax paid on? The tax office will demand the money
The tax office is entitled to 2% tax on civil law transactions. According to it, it is calculated not on the purchase price, but on the market value of the apartment. If you found a bargain on the market and bought a property at a bargain price, the tax office may be interested in why you paid so little for it. To check this, he inspects the property and checks whether you paid too little tax on the purchase.
If you are in the process of taking out a mortgage loan and want to protect yourself, ask the bank for a copy of the property appraisal report. It is always prepared during the credit procedure. Such a document prepared by an appraiser will be useful during an inspection carried out by the tax office. It will be evidence of the market value of the property.
What is the PCC tax paid on? pexels.com/RDNE Stock project
Check from the IRS. How to protect yourself?
The second way is to include in the loan agreement information on how much the apartment was valued by an appraiser. What to do if you don’t buy real estate on credit, but for? After all, premises regularly appear on the market at bargain prices and require major renovation. In this case, it is worth taking photos of the apartment at the time of purchase to have evidence of what condition it was in at the beginning. Don’t forget to take photos of your electrical and plumbing systems if you plan to replace them. You can also contact the cooperative, which may, for example, issue you a document stating that hot water and heating were not supplied to the premises.
Source: Gazeta
Bruce is a talented author and journalist with a passion for entertainment . He currently works as a writer at the 247 News Agency, where he has established himself as a respected voice in the industry.
