Okay, so I bought and moved into a new house in June 2023. I have taken advantage of the mortgage balance deduction each year since then and plan on continuing to do so until the 13 years are up.
Meanwhile, I put my previous mansion (lived in for 5 full years) on the market, but it took a while to sell. When I finally sold it in March of 2024, I ended up turning a profit of about 6m yen.
I had been told by the realtor that I could not use the 30m special deduction on sale of property if I was also taking the mortgage balance deduction, so I duly filed the profit and depreciation in my taxes for 2024 (while taking deductions for brokerage fees and paperwork).
The result was a tax bill of about 1m yen, and my residency tax and health insurance premiums have shot through the roof because the profit from the sale effectively doubled my income last year.
Am I missing out here? Could I have taken advantage of the deduction on the sale and saved myself a lot trouble? Perhaps because the sale of the old mansion was in a different fiscal year as the acquisition of the new house?
Sorry if this has been asked before, but I just want to check before consulting with a tax scrivener about maybe revising my filing for 2024.
Thanks in advance!
by LetterLegal8543