1590 Another property purchase tax question...

Sorry another question of tax - so much has already been written on the forum but I can't seem to find the answer to this one.

Assuming that you are buying a house with a lot of land but the property and land is being sold as one price e.g. not split; then how is the tax calculated? I have looked at some of the property purchase calculators suggested and they calculate @ 10% but I thought the land was calculated @ 18%.

Any advice gratefully receieved.

Category
Property Sales/Rental Advice

Submitted by Anonymous (not verified) on Fri, 10/14/2005 - 09:37

[QUOTE=sandra.a.harris@btinterne]Sorry another question of tax - so much has already been written on the forum but I can't seem to find the answer to this one.

Assuming that you are buying a house with a lot of land but the property and land is being sold as one price e.g. not split; then how is the tax calculated? I have looked at some of the property purchase calculators suggested and they calculate @ 10% but I thought the land was calculated @ 18%.

Any advice gratefully receieved.[/QUOTE]

If you do not split the price the tax is calculated on the higher value (18%).
But I can see no reason why you shouldn't split the price: it is something always done and it's not illegal.

Submitted by Anonymous (not verified) on Fri, 10/14/2005 - 14:20

Thanks

We just heard this evening that the notaio in Bologna where we are buying has split the property and land - so our tax bill is lower than we expected.

Grazie!