Property Gain Tax

[willi]

Any one there can please help me on the matter above.

I bought an apartment in 1996 for $85.5K, and recently sold it off below cost at $85K. The buyer wants to put it as $100K in the Sales & Purchase Agreement, so that she could get more loan. And the market value by the bankers is approx $100K
( note: I have trying to sell this property for years at $90K ++, but the demand is soft)

My concern is if there is any effect on myself with Income Tax. In actual fact, I am loosing money ( on the apartment price, bank interest, legal fees, plus lots of other fees involved). But with the SnP, it reflects that I am making approx $15K

Any possible consequenses which I have to consider before I agreed to this new SnP arrangement :confused:

Thank you in advance for the inputs ... :) :) :)

[rachel sj]

If your concern is just on payment of real property gain tax, then if you sell the apt now/near future, there is no such payment impose since govt has allowed exemption on such tax since 1 april 2007 (RPGT Exemption (No 2) Order 2007 - PU(A)146/2007).

Whether or not it's advisable to mark up the selling price to RM100k and impliacation on RPGT will more likely be your buyer's concern, should the govt lift up the exemption in future...

[willi]

Thanx Rachel ... I am a law abiding citizen ahem .. ;) . Worried if the differences of the actual selling price and the price in SnP would give me problem later on ... how ah :confused:

[rachel sj]

u r welcome..but having said that...you may still want to consider whether to agree to mark up the selling price...since, (to view this seriously) it amounts to you participating in a fake transaction just to help the buyer to obtain higher loan sum from bank...

[willi]

yeah la ... to be safe, better not. After all, I don't get any benefit also ;)
thanx for the advise