Selling a House to Your Son, Even with His Remittance, Could Still Be Considered a Gift! The National Tax Service Investigates '

If only a portion of the payment can be proven as actually paid, then the part that cannot be proven as actually paid will be handled according to relevant regulations. The actual case will depend on how much proof of payment the parties can provide, whether the source of funds can be verified, and the overall transaction circumstances. If deemed a gift, it's not taxed directly based on the transaction price of 10 million won. While 10 million won is the agreed-upon house price between father and son, even if part or all of the transaction is eventually treated as a gift according to regulations, it doesn't mean the National Tax Service will directly use 10 million won as the value of the real estate gift. According to Ministry of Finance regulations, the value of gifted real estate is generally calculated based on the announced land value at the time of the gift, and for houses, it's based on the assessed housing value. Therefore, you cannot estimate the actual gift tax simply by calculating '10 million won transaction price - 2.44 million won tax-exempt amount.' For gift cases occurring on or after January 1, 2025, gift tax adopts a three-tier progressive tax rate: 10% for taxable net gift amounts up to 28.11 million won, 15% for amounts between 28.11 million won and 56.21 million won, and 20% for amounts exceeding 56.21 million won. The actual amount of gift tax payable still needs to be calculated based on the value of the gifted property, other gifts in the same year, tax exemptions, and legally deductible items. When parents and children buy houses, don't just keep remittance records; complete cash flow is key.