Tax Savings Benefits of Joint Ownership for Couples

Joint ownership of a house can lead to tax savings in acquisition, property, transfer, and inheritance taxes, benefiting couples in various ways.

### Tax Benefits of Joint Ownership for Couples in South Korea
* 💑 Couples can save on transfer tax when selling a house valued over 900 million won by calculating the tax based on each person's share, leading to **significant tax savings**.
* 🎁 Gift tax on capital gains can be reduced by **dividing the tax base into each person's share**, with the tax rate applied **varying by range**.
* 🏠 Joint ownership by a couple allows for **savings on comprehensive real estate tax**, as the tax is imposed based on **individual ownership**.
* 📉 "The most advantageous range for joint ownership is between **900 million won and 1.2 billion won**."
* 🏠 In the case of joint ownership by a couple, **comprehensive real estate tax is not levied**, even if one person owns two properties.
* Joint ownership can help save on inheritance tax, as there is **no inheritance tax on the property under both spouses' joint names**.
* 💰 When calculating inheritance tax for the husband's inherited property, the wife's share can be **excluded**, resulting in a **lower tax amount**.
* 🔄 It is better to start with **joint ownership from the initial acquisition**, and when changing from individual ownership to joint ownership, it is important to consider the associated costs like **transfer tax** carefully before making a decision.

Well, many couples have purchased a house under joint ownership because of the tax benefits. It is known to be advantageous for tax savings. Let's find out in which aspects joint ownership actually benefits in terms of tax savings. A couple came to look at a house for the first time in their lives to buy their own home. They carefully looked around the house worth about 600 million won in the market and fell in love with it. Oh, this place seems perfect for us. Moreover, if we register it under joint ownership when we are both 10 years old, we can pay less tax. I heard that from a friend, and it seems like a good idea. Let's do that too. When you register a house under joint ownership, there is no difference in terms of tax. The tax amount is the same. Briefly, when acquiring real estate, vehicles, etc., you pay taxes based on the value of the property. Therefore, whether the house is for personal use or joint ownership, the tax amount remains the same. So, after purchasing a house under joint ownership, one year has passed.

One day, a couple received property tax bills side by side. Gwasan's life is full of expectations. In fact, how much is it? As one, it's buzzing. What's inside the shell? It's not a bottle. Based on the standard of the same address, property taxes are improved and reflected. Clearly, if it's 42 million won in one area, there is no difference in fate. However, here for a moment, property tax comes out on the property just like acquisition tax. It's because of the world of property. It doesn't matter if you have holdings, etc. Anyway, the value of this property is the same, so whether it's in the joint name of the couple or in separate names, there is no difference. And after three years, we looked for real estate again to sell the house. During that time, the market price of the house rose quickly from 600 million won to 800 million won. How much capital gains tax do we have to pay? How much did the grip spread? We cut it nicely for three years.

Well, then it doesn't come out on the transfer income tax because we are joint owners, so that's not it. In this case, regardless of the number of people, as long as the holding residence is less than 900 million, and there is one or more owners and one house per generation, it is exempt from transfer income tax. So, when is it good to be in joint names? When selling a house, if the value exceeds 900 million won, you have to pay transfer tax. In the case of joint names, the transfer tax is calculated based on each person's share, so the transfer tax is reduced. It is advantageous for tax savings. In what situations can tax savings be possible in the case of joint names? For example, if you purchased a second home for 600 million won and sold it for 1.2 billion won, a capital gain of 600 million won is generated. You have to pay transfer tax on this capital gain. When applying a transfer income tax rate of 35% for a single owner, the transfer tax amounts to 367,215,000 won, which seems burdensome. In the case of joint names, since it is divided into two people, for each person,

You will have to calculate the gift tax by 300 million won each. In this case, because it is calculated for each 300 million won, the tax rate is applied at 35% or 24%. When calculated like this, the expected gift tax per person is 1.218 million won, totaling 2.436 million won. Therefore, when it is clearly done jointly, after the transfer at 1.2365 million won, the income tax will be reduced. When a couple purchases a house jointly, the acquisition tax or property tax is the same as when purchased individually, but the gift tax can be significantly reduced because the tax rate applied to the capital gains varies by range, allowing for greater tax savings as the amount decreases. Also, by purchasing jointly as a couple, you can save on comprehensive real estate tax. Comprehensive real estate tax is imposed based on individuals who own houses or land, so it is different from property tax, which is imposed based on the property itself. Ultimately, comprehensive real estate tax is a concept based on individual income.

When calculating the comprehensive real estate tax base, the individual name reduces the disclosed transaction amount by the restoration. In the case of joint ownership by a couple, they will each receive a deduction of 600 million won, which totals a deduction of 1.2 billion won when combined. At this point, the most advantageous range for joint ownership is between 900 million won and 1.2 billion won. However, when it comes to Oh Ryong owning two properties, comprehensive real estate tax must be paid, but in the case of joint ownership by a couple, comprehensive real estate tax is not levied. Furthermore, there are also tax savings that can be achieved through joint ownership. Here, there is a long-standing issue of a house owned jointly by an elderly couple. After supporting their children and sending them off, the remaining two people are living their lives peacefully. Let's go back to our newlywed days and live a simple life together, taking care of each other, and cherishing each other. But one day, the husband who promised to spend a long time together suddenly...

She left. The wife who fell into sorrow for losing her husband, Flower, is now worried even more about a bigger issue. It's because of the inheritance tax on the house worth 1.2 billion won they lived in together. The expected inheritance tax is about 30 million won. She is at a loss on how to pay it right away. However, since the house is under both spouses' joint names, there is no inheritance tax. How can they save on inheritance tax with joint ownership? If the house was solely under the husband's name, applying the deduction of 500 million won for individual deduction and 500 million won for spouse deduction, they would calculate the inheritance tax for 200 million won. Since it was owned under joint names, the property inherited by the husband will exclude 50% of the wife's share, which is the remaining 600 million won. When calculating the inheritance tax for 200 million won, the individual deduction of 500 million won is applied, and the spouse deduction of at least 500 million won is also applied. Then, the deducted amount would be 1 billion won.

You know, because the amount of inherited property is much lower than the 25th, there is no capital gains tax. What points should we look at and prepare for in joint ownership that can also help with inheritance tax savings? It's better to start with joint ownership from the initial acquisition and when changing from individual ownership to joint ownership, it's good to consider the costs like transfer tax carefully before making a decision, hoping it will help with tax savings. Oh, oh, oh, quote.

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The Tax Implications of Joint Property Ownership

Joint ownership of a house does not affect the amount of property tax paid.

The tax is based on the property's value, regardless of ownership.

Additionally, the increase in the house's market price will lead to capital gains tax when sold, based on the profit from the initial purchase price.

Tax Advantages of Joint Property Ownership

Joint property ownership is exempt from transfer income tax if the value is less than 900 million won, providing tax savings for co-owners.

When selling a house valued over 900 million won, joint names can reduce the transfer tax burden by dividing it between the owners.

Purchasing a house jointly as a couple can also lead to significant reductions in gift tax and comprehensive real estate tax, further increasing tax savings.

Tax Implications of Joint Ownership for Real Estate

2 billion won for a couple, avoiding comprehensive real estate tax.

In the case of inheritance tax, joint ownership allows for a larger deduction, reducing the tax burden.

The story highlights the benefits of joint ownership for married couples in reducing inheritance tax.

Tax Savings and Considerations for Joint Ownership

Joint ownership can help with inheritance tax savings due to the lower amount of inherited property and the absence of capital gains tax.

It is important to carefully consider the costs, such as transfer tax, when transitioning from individual ownership to joint ownership, especially during the initial acquisition, to maximize tax savings.