Opportunity to Reduce Tax Burden for Dual-Homeowners with Redevelopment Entry Rights? Analysis of Tax Strategies Amidst Changes in the Real Estate Market

Amidst the rapid changes in the real estate market, the possibility of reducing tax burdens for homeowners holding ‘redevelopment entry rights’ is being raised. According to a report by Hankyung News, along with changes in the government’s real estate policies, the need to establish various tax strategies for such holders is growing as tax regulations are adjusted. Specifically, as the value of redevelopment areas increases and housing prices rise, the tax burden from capital gains tax is increasing. This analysis delves into this situation and presents practical strategies for homeowners with dual-homeownership to minimize their tax burden.

Analysis of the Impact of Redevelopment Entry Rights on Dual-Homeowners

A ‘redevelopment entry right’ grants the right to participate in a redevelopment project, which is a factor that generates expectations of increased property values in the area. However, if a dual-homeowner holds such an entry right, complex tax issues can arise regarding capital gains tax and income tax. FireMarkets’ data analysis shows that the increase in the value of redevelopment areas can increase the assessed value of the property, which in turn can lead to an increase in capital gains tax.

Complexity of Calculating Capital Gains Tax

Capital gains tax is a tax on income generated from the sale of real estate, calculated considering factors such as holding period, acquisition price, and sale price. In redevelopment areas, the acquisition price may be lower than the current market value, but it often increases during the redevelopment project process. Therefore, dual-homeowners must accurately identify this value increase and reflect it in the calculation of capital gains tax.

Strategies for Reducing Tax Burden

There are several strategies that dual-homeowners can consider to reduce their tax burden.

1. Value Adjustment: Obtaining assistance from a real estate appraiser to accurately assess the value increase in the redevelopment area and reflect it in the acquisition price to reduce capital gains tax.


2. Tax Planning: It is important to consult with a tax expert to establish an optimal tax plan tailored to the individual’s circumstances.


3. Long-Term Holding Strategy: By holding the property for a long period until the redevelopment project is completed, the tax burden from capital gains tax can be delayed. (However, you must be careful to comply with tax regulations during long-term holding.)

Government Policy Changes and Potential Tax Reform

The government has recently implemented various policies to stabilize the real estate market, and discussions regarding tax reform are ongoing. In particular, measures such as expanding tax benefits for dual-homeowners or easing tax regulations related to capital gains tax are being considered. The tax burden on dual-homeowners can fluctuate depending on these government policy changes, so continuous attention and information gathering are necessary.