Income statement: what you need to know when selling real estate and a car

“When 10 years have not elapsed between the purchase and sale of real estate, the profit from the sale is taxed at a rate of 15% or 20 percent. At the GPM rate, depending on whether the sales revenue, along with other non-labor income, they exceeded 120 average wages or not. The same tax conditions apply to income from the sale of vehicles that have not been retained for 3 years, “explained Stasė Aliukonytė-Šnirienė, Director of the Department of Tax Obligations of the ITS under the Ministry of Finance, noting that the ITS receives data on real estate and vehicle sales from the Registration Center and “Regitros”.

According to the latest data, almost 9 thousand. After selling real estate last year, the population has already declared 3.7 million. 45 thousand euros to pay to the GPM. 2.7 million people sold vehicles. Euro Tax The maximum amount of GPM declared per capita for the sale of real estate is as high as 0.5 million. euros

This year, declare the income received for 2019. 44 thousand have sold real estate. population, for vehicles sold – 98 thousand. population.

Last year, 35 thousand. 21 million people declared real estate sales. EUR GPM, and 92 thousand. vehicles sold – 8.1 million. euros to the state budget payable to the GPM.

The STI points out that if the income from the sale of real estate, together with other income not related to employment, does not exceed 120 VMU (136,344 Eur), they are subject to a 15% tax. income tax rate, and the portion of income mentioned that exceeds 120 VMU is taxed at 20%. tariff.

The STI notes that the planned exemptions and the GPM do not require payment:

• if the property or vehicle is sold cheaper than what was purchased (or for the same price);
• when the real estate has been owned for 10 years and more (until 31.12.2015 there was a requirement to keep the property for at least 3 years, since 01.01.2016 the term was changed to 10 years), and the vehicle it was kept for 3 years. and more;
• when the resident’s residence has been declared in the house sold during the last 2 years before the sale;
• when the place of residence has been declared for less than 2 years, but the income received from the sale of the dwelling within one year from the sale of the dwelling is used for the acquisition of another dwelling in which the resident declares home location.

The ITS informs residents that they are experiencing financial difficulties and that before July 1. You will not be able to pay taxes until the end of the emergency, and for another two months, ITS will not calculate interest on arrears and will not take remedial action.