We sold a house last year. We only recently realized that the sales contract only referred to a land purchase (the buyers demolished the house, even though it was fully renovated and only 14 years old) recently.
We were told at the tax office we would owe no tax this year, but we are in danger of owing tax next year. Her underlying explanation (in the short time given to us at the tax office) claimed it had to do with the selling of land and buying a house. We have a loan for the new house, and even though the new house with land cost more than the old one, because the sales contract listed the old dwelling as land, it seems to be a problem.
Sold house (listed on the sales contract as a land sale) 58 million
\- mortgage paid off- 6m
\- commission – 2m
\————————-
Newly purchased land – 29m
\+
new house 30 m
(w loan for 18m) (currently being constructed – be finished June or July this year)
Anybody know why we might be on the hook for a tax bill next year?
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by senseiinnihon