| Title |
Tax Comparison Analysis for Individuals vs. Corporations in Real Estate Purchase and Sale |
| Authors |
권준범(Kwun, Joon-Beom) ; 김덕수(Kim, Duksu) |
| DOI |
https://doi.org/10.5659/JAIK.2024.40.11.49 |
| Keywords |
Real-estate Policy; Acquisition Tax; Property Tax; Transfer Tax |
| Abstract |
The purpose of this study is to empirically compare and analyze the differences between individuals and corporations in real estate
transactions and to investigate whether the strong policies applied to corporations when acquiring real estate are actually effective. To achieve
this issue this study examined the tax rates applied to individuals and corporations and investigated the practical differences when buying and
selling a home at the same condition. As a result this study found that the different policies and tax rates applied to corporations have a
significant potential for misuse in real estate buying and selling which is contrary to expectations. As demonstrated in this study's simulation
of housing transactions by individuals and corporations, hasty policies are not only likely to be misused as tools for realizing short-term
capital gains, but also may unnecessarily distort the real estate market by making long-term ownership more difficult. This simulation study
on the correlation between real estate policies and property prices confirms this and hopes to serve as a foundation for future research that
can contribute to the stabilization of real estate prices. |