Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Thread Tools Display Modes
Old 04.08.2011, 14:16
Join Date: May 2008
Location: Zurich
Posts: 109
Groaned at 27 Times in 5 Posts
Thanked 3 Times in 3 Posts
Flower has slipped a little
Rolling over of capital gains tax on sale of principal residence to BUILD new house

There is a big discrepancy between the building cost and purchase prices per square meter in Switzerland. Hypothetically, if one bought a house (principal place of residence) for CH0.5M ( CHF0.2 equity & CHF0.3M mortgage) and were to sell this principal place of residence for CHF1M and use the proceeds to BUILD another bigger house (and keep it as one’s principal place of residence), in order to minimise the capital gains tax and maximise the rolling over of capital gains tax, does one need to build a new house:

1. that costs CHF1M to build and can possibly be estimated to be worth a CHF1.5M by local tax authorities? There can be a big gap between the cost of built and final estimated value by tax authorities. Does anybody know how big that gap is in a % range?

2. that is estimated by tax authorities to be worth CHF1M after it is built (e.g. one could use CHF0.7M to built a new house which final estimated value by tax authorities to be CHF1M).

3. using the same amount of equity that one has in the current house, i.e. sale price of CHF1M minus CHF0.3M mortgage, i.e. CHF0.7M to built if one does not want to take on any mortgage?

4. using the original amount of equity that one put to buy the current house CHF0.2M and if one does not want to take on a mortgage?
Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital gains tax jamestsmith Finance/banking/taxation 30 07.08.2014 20:45
US Capital Gains Tax georgiatryon Finance/banking/taxation 3 14.07.2011 00:33
No capital gains tax on real estate - REINVESTMENT Flower Finance/banking/taxation 20 08.04.2011 18:26
Capital Gains Tax - Shares StewartN Finance/banking/taxation 0 24.10.2010 01:45
Capital gains tax on house appreciation monkeybanjo Housing in general 7 19.05.2010 14:26

All times are GMT +2. The time now is 15:58.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0