Deputy Prime Minister Choo Kyung-ho held ‘The 1st Real Estate Ministerial Meeting’
Special deduction is also possible… Multi-family owners benefit from win-win rentals regardless of house price if they plan to convert to one house
[아시아경제 세종=권해영 기자] When a landlord who has rented a cheonsei lease sign a lease agreement with a new tenant after the end of the existing contract, if the rent is raised to 5% or less, two years of actual residence will be recognized, and capital gains tax will be exempted when selling the house in the future. At the time of rental, even if you are a multi-homeowner, if you have a plan to convert one house in the future, this benefit is applied regardless of the house price.
On the 21st, the government held the ‘1st Real Estate Ministerial Meeting’ presided over by Choo Kyung-ho, Deputy Prime Minister of Economy and Minister of Strategy and Finance, and ‘Measures to stabilize the rental market and real estate normalization tasks for the third quarter’ ‘ was announced.
First of all, in the case of a win-win landlord who concludes a new rental agreement by raising the rent by 5% or less compared to the previous agreement, it is considered that the two years of actual residence, the transfer tax exemption requirements for the area subject to adjustment, are fulfilled. Currently, the period of recognition of real residence is only one year, but this will be increased to two years. This is to minimize the side effects of a decrease in the amount of rentals and an increase in the price of cheonsei, as the landlord, who has never lived in the real estate, has moved in and moved in to meet the transfer tax exemption requirements.
As it is considered that two years of actual residence have been fulfilled, when you sell the house in the future, you can also receive the special deduction for long-term possession of one house per household (special deduction for long-term residence).
The requirements for recognition of win-win rental housing will also be greatly eased. Currently, at the time of commencement of rental, a single householder with a house price of less than 900 million won can be recognized as a win-win rental housing. .
After the government amended the enforcement ordinance of the Income Tax Act next month, the new system will be applied to rentals after December 20, 2021, the first effective date of the win-win rental system. The application period will be extended by two years from the end of 2022 to the end of 2024.
A government official explained, “This is a measure to prevent a series of tenant evictions in the process of self-employment in order to induce restraint from increasing rental prices and meet the transfer tax real residence obligations.”
Tax benefits will also be expanded to lower the burden of housing costs for non-homeless cheonsei residents. The tax deduction rate for the monthly rent paid by homeless householders will be raised from the current 10% to 15% with a total salary of 70 million won or less and from 12% to 15% with a total salary of 55 million won or less. It will be applied from this year’s monthly rent.
In the case of repayment of the principal and interest of the cheonsei deposit loan, income deduction is possible up to 40% of the current annual limit of 3 million won, but the deduction limit will be expanded to 4 million won.
Deputy Prime Minister Chu said, “From August of this year, the worldwide contracts that raised the rent by 5% or less in accordance with the Lease 2 Act two years ago will expire sequentially, and seasonal demand in the fall will overlap, which may increase the burden on tenants who are about to move.” “The government intends to preemptively respond to factors in the rental market in the second half of the year through taxation, financial support, and supply expansion,” he said.
Sejong = Correspondent Kwon Hae-young email@example.com