(Taichung News) Taichung City Local Tax Bureau received a phone call from a citizen inquiring that he has recently inherited a parcel of readjusted land from his mother and whether he is able to deduct the land readjustment fee borne by his mother and 40% reduction in land value increment tax?
Local Tax Bureau explained that all the expenses left after deducting the land improvement fee from the total amount of land value increment should be paid for by the landowner while transferring the land. If the cause of inheritance occurs after the confirmation of the land readjustment outcome, and the heir transfers the land again after the inheritance registration, it is no longer considered as first-time transfer, therefore the land readjustment fees borne by the heir cannot be deducted from the total amount of land value increment, and it is not eligible for the 40% reduction in land value increment tax.
For more tax-related information, please call the bureau's toll-free number 0800-000321 or 22585000#1 for the telephone customer service center, and our staff will be glad to assist you.