Do I have to pay taxes on property received through divorce property division?

浏览量38,412

When divorcing my wife, I received an apartment and some cash from savings as divorce property division. Is there tax on property divided during divorce like this? I'm wondering if I need to pay gift tax or income tax. Even though it's just property settlement from divorce, I'm asking because I'm wondering if tax filing is needed.

divorce consolation money

divorce property division

相关咨询的解答

作者: 김국일

Generally, no taxes are imposed on property received through divorce property division.

Divorce property division is the division of joint property formed by the couple during marriage, and since it does not constitute a gift, no gift tax arises.

In addition, since it does not constitute income under the Income Tax Act, no income tax is imposed either.

However, when receiving ownership of real estate in the divorce property division process, acquisition tax, local education tax, and rural special tax may be imposed under the Local Tax Act.

However, since this real estate transfer is also viewed as part of simple property division, capital gains tax is not imposed.

According to recent precedents, even when real estate held in each spouse's name is mutually transferred, this is not viewed as a paid transfer.

In addition, even if the divider is exempted from the obligation due to property division, the economic benefit arising from this is not considered a ‘transfer of assets accompanied by consideration’ subject to capital gains tax.

In conclusion, the only cases where taxes arise due to divorce property division are some local taxes due to real estate transfers, and gift tax, income tax, and capital gains tax are generally not problematic.