Property Reinvestment: Tax Compliance with Salary Savings and Registry Issues

[User_7eff51cf]

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User_7eff51cf
PARTICIPANT
January 11, 2025 at 8:34 am

I recently sold a property lawfully, and the proceeds were credited to my bank account. I now want to reinvest the entire amount in another property to claim exemptions on capital gains tax. However, the seller of the new property is suggesting that we show a lower amount on the registry for their reasons.

Additionally, I do not fall under the category of individuals who file taxes, as my income is within the non-taxable range. Some of the money I plan to reinvest includes my past salary savings. Would the use of such salary savings from my bank account attract scrutiny during the reinvestment process or tax filing? Is there any legitimate way to handle this situation to ensure compliance while addressing the seller’s stance? Are there specific guidelines or strategies I can follow in such cases?

I hope i can get practical advice

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[Expertthinker8580]

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Expertthinker8580
PARTICIPANT
January 12, 2025 at 3:39 am

Nope, my advice is to not do this because you have nothing to gain from it.

It benefits only the seller. You may save some purchase taxes, but the seller benefits more.

Is there a reason you’re trying to accommodate his request?

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[User_7eff51cf]

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User_7eff51cf
OP
January 12, 2025 at 6:52 am

Because I can only get exemption on taxes if I buy a property in next few months and that property is worth buying If I compare​

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