Real estate

Sale of a parking space without income tax

Real Estate Attorneys of our Law Firm in Poland would like to inform that an individual interpretation has been issued on the issue of settlement of the sale of a parking space.

Factual situation

In the present case, the taxpayer purchased a parking space in a garage hall as an individual. Thereafter, he started a sole proprietorship without including the parking space in his business assets and the purchase was financed entirely from his private wealth. A separate land and mortgage register was kept for the parking space. The taxpayer was in doubt as to what income tax consequences the sale of the parking space would have.

Settlement of sale of private real estate

In an individual interpretation dated 16 September 2022 (0113-KDIPT2-1.4011.532.2022.4.MZ), the Director of the KIS (National Fiscal Information) indicated that the sale of the parking space is accounted for in the same way as other private property. The parking space in the present case was not included in the company’s assets and was not depreciated. Therefore, it should be deemed that the sale of the parking space, which takes place before the lapse of 5 years counting from the end of the calendar year in which it was acquired, will constitute a source of income referred to in Article 10 paragraph 1 point 8 of the Personal Income Tax Act. As the provision indicates, income is taxed if the transaction takes place before the lapse of five years, counting from the end of the calendar year in which the acquisition or construction took place. Pursuant to Article 30e paragraph 1 of the PIT Act, income from the disposal of real estate is taxed at a tax rate of 19%. In the event that the five-year time limit expires, counting from the end of the calendar year in which the acquisition of the parking space took place, no income tax will arise in the case in question.

Do you own a parking space and wonder whether you will pay income tax when you sell it?

If you have questions about income tax on a sale of a parking space, please contact our Real Estate Law Office in Warsaw, Poznan, Krakow and Wroclaw.

Author team leader DKP Legal
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