Exemption from CGT payment.
The sale of principal residence may be exempted from capital gains tax, subject to the fallowing conditions: - Sale or disposition of principal residence - By natural person - Proceeds of which is fully utilized in acquiring or constructing a new principal residence within eighteen (18) calendar months from the date of sale or disposition - The historical cost or adjusted basis of the real property sold or disposed shall be carried over to the new principal residence built or acquired - The Commissioner shall have been duly notified by the taxpayer within thirty (30) days from the date of sale or disposition - The said tax exemption cab only be availed of once every ten (10) years - Execution of Escrow Agreement* - Escrow Agent (Bank) - Seller - Buyer - BIR - If there is no full utilization of the proceeds of sale or disposition, the portion of the gain presumed to have been realized from the sale or disposition shall be subject to capi
