Since I just sold my house lately, I just want to share with you some tips for this real property gain tax (i.e. RPGT) that I learned.
First tip is you can apply for waiver for this RPGT once in a life time. This means once you use it, that's it. So think carefully before you apply for this. :D
There are forms (from Income tax office) that you need to fill up for this application. For convenient, you can just ask your lawyer to do that for you. Most lawyers offer this service. You still need to pay for the RGPT and once your application is approved, they will refund your money.
You need to show this document (either one) for this RPGT waiver applications:
- Your electricity or water bill OR
- Occupation Certificate (i.e. OC) of your house
A lot people do not know about this OC thingy, even for my lawyer. I figured that out myself from my income tax office website. This is very useful especially if you have new house and not vacant yet, and you want to sell your house. No electricity or water bill is required.
Second tip is don't put 2 names under this property if you trust the other party. The reason is if this property belongs to 2 of you (e.g. couples), you both need to apply for this RPGT waiver. Once both of you applied, that's it. You both have already used this once in a life time ticket! lol :) If you trust your partner and just use one name, you can save one more time of RPGT waiver in future. :)
Okay, that's all! Hope this helps! :)
