Re: Watch out for this if selling a place you bought before July 2012!
Posted: Mon Nov 27, 2023 3:34 pm
Personal Finance for Residents of Japan
https://retirejapan.com/forum/
But why is the address the purchaser was living in at the time relevant?RetireJapan wrote: ↑Mon Nov 27, 2023 3:17 pmIf you sell your residence, you can get a big tax break on any capital gains tax owed.
Wouldn't matter if you were selling a property you weren't living in.
So this is basically an issue of determining whether or not it became your main residence when you bought it? I'm still confused about the wording in the first post "the judicial scrivener who draws up the land registry documents will want to see proof of your address at the time you bought". On the day you buy a property you usually won't be living there. You'll only start living there after you bought it. So like Deep Blue says, why is it important to prove the address you were living at when you bought the property? Surely it's irrelevant?RetireJapan wrote: ↑Mon Nov 27, 2023 3:17 pm If you sell your residence, you can get a big tax break on any capital gains tax owed.
Wouldn't matter if you were selling a property you weren't living in.
Thanks @northsaver, I think that's exactly right. It's because foreign residents didn't get onto the juminhyou until 2012. I'm guessing that the government didn't want to spend money digitising the old data and entering the old records into the local authority juminhyo system, which would have required too much joined up thinking. They probably didn't anticipate that this might cause issues for a sizeable number of foreign residents who had purchased property pre-July 2012, for the next few decades down the line. In our case, we lived in the property, and the land registry shows our address as the property a week after purchase.northSaver wrote: ↑Tue Nov 28, 2023 2:23 am Thinking about this logically (not necessarily a good idea when it comes to government bureaucracy), maybe this is what's happening:
1. You buy a property and they put your name on the deed. They also put your address, which at the time of purchase is your previous address, not the address of the property.
2. When you sell it they have to update the property's historical record of ownership. If you lived in it, they want to put your name and address (the property's address) on the record, but they can't do that because the deed has your previous address. So they need proof that you lived in the property after you bought it.
3. Assuming you notified the authorities of your change of address after you moved in, they can get this proof from your immigration records if before July 2012, or jūminhyō if after.
4. The tax office can access the property's updated records if necessary in order to determine CGT liability.
It's just a guess, could be completely wrong. Any property experts on here who can put us straight please?
Thanks for raising the issue, I would never have known about it otherwise. If anything it shows that you have to allow extra time for this kind of paperwork (up to 30 days, as you said) which is useful knowledge indeed.jane doe wrote: ↑Mon Dec 04, 2023 4:17 am I offer up my experience in the hope that some of you might avoid the problems I had. I actually expected a large estate agent to have lots of experience by now in selling to non-Japanese, but this guy said it was the first time he'd had a case like this. However, the guy at Immigration told us he gets a steady stream of people like us needing the self-same document. You are welcome to be sceptical and if you like, just ignore this.