Tip | Consider a big purchase before the end of the year!
Tax tip 5
Are you considering doing a big purchase? Or are you considering selling your house and maybe buying another one? It is important to think this through.
Besides, it is also good to know that the timing of such purchases can give you a tax benefit (if you own more than the tax-free exemption). In this case, timing your purchase can save you capital gains tax.
In 2021, the tax-free exemption amounts up to € 50,000 if you are alone. Do you have a tax partner? Then, the tax-free exemption amounts up to € 100,000 for the both of you.
The reference date of your capital is the 1st of January. Your capital in excess of the tax-free amount is taxed.
Are you in doubt whether you want to buy that new car? It is good to take into account the tax-free exemption. If you own more than the tax-free amount, it can save you money to do the expenditure before the 1st of January.
Selling or buying a house
We used an example of an expensive car, but it can be any expenditure. Besides that, the timing of selling and buying a house can save you money as well. Are you planning to sell your house? It is beneficial to complete this after the 1st of January to avoid having the surplus value on your bank account on the 1st of January. At the same time, it is beneficial to buy another house before the 1st of January if you own more than the tax-free exemption. This reduces your capital on the 1st of January.
We are happy to help!
Do you have questions regarding this topic? Or do you have other tax-related questions? We are happy to help! Please contact us for a free introduction using our details mentioned below!