House Sale: Parliament Approves Amendments to the Capital R & D Plan of the IRS

Parliament approved two amendments to the rules governing the taxation of capital gains realized by the IRS on the sale of the home, measures created by the PS and which, in one case, did not have any effect. were adopted only with the support of the right parties.

One of the amendments is for people over 65 who decide to sell their home. The current rules state that, in order not to pay the IRS on capital gains, these homeowners must reinvest the value of selling the home in another permanent home. As this clause is contrary to the natural life cycle of the old, the PS proposes to maintain the exemption for homeowners whose at least one member is 65 years old or older and who, with the proceeds of the sale of the property subscribe to an insurance contract, subscribe individually to an open pension fund which guarantees them a regular and periodic payment of a maximum value equivalent to 7.5% of the amount invested. Or join the publicly funded program.

The measure was adopted with the opposition of the usual partners of the government (PCP and BE) and benefited from an impulse from the PSD, which ended up voting for. The CDS has abstained.

The second modification of the real estate appraisal scheme is aimed at people who rehabilitate or rebuild their homes with public aid. In this case, with the support of all banks except the CDS (who opposed it), now, those who receive public support for the rehabilitation of their house and sell it before 10 years will have a double penalty IRS: it will always be obliged to pay the capital gain tax (even if you buy another house) and you will have to do it for 100% of its value. For the moment, the measure has the direct beneficiaries owners who received assistance following the fires of October 2017, but will be permanently applied to all other situations.

The proposals of the left bloc and the PSD propose to modify the capital gains according to the duration of detention of the real estate works and / or the rehabilitation works to which they were subjected.