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 ...
