If a person becomes two houses temporarily for one household, the requirement to be exempted from income tax on the capital gains of the previous house.

If two houses are temporarily owned by one household, in order to be exempted from income tax on the transfer income of the previous house, a person who has acquired another house for the purpose of moving the house to the other house within the period prescribed in Article 6 (1) of the Enforcement Rule of the Income Tax Act, has transferred the previous house to the other house within the same period from the date of acquiring the other house, and the previous house shall meet the non-taxation requirements of one house for one household.

Article 5 subparagraph 6 (i) of the former Income Tax Act (amended by Act No. 4803 of Dec. 22, 1994), Article 15 (1) of the Enforcement Decree of the Income Tax Act, Article 6 (1) of the Enforcement Rule of the Income Tax Act

Supreme Court Decision 91Nu9817 delivered on March 10, 1992 (Gong1992, 1331) 92Nu8415 delivered on September 8, 1992, delivered on December 22, 1994

[Defendant-Appellee] Plaintiff 1 et al.

Head of Dong Daegu Tax Office

Daegu High Court Decision 93Gu2460 delivered on May 27, 1994

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

The grounds of appeal by the Plaintiff’s attorney are examined.

According to subparagraph 6 (i) of Article 5 of the Income Tax Act, one house for one household as prescribed by the Presidential Decree and the income tax shall not be imposed on the income accruing from the transfer of a certain area of land attached thereto. According to the main sentence of Article 15 (1) of the Enforcement Decree of the same Act, one house for one household comprised of the resident and his/her spouse together with the family members living together with the same address or same place of residence shall be deemed to own one house in Korea and for three or more years. According to Article 6 (1) of the Enforcement Rule of the same Act, if a household having one house in Korea acquires another house before transferring the house for the purpose of moving the house, the income tax shall not be imposed on the income accruing from the transfer of the previous house within one year (six months in case of apartment houses) from the date of the acquisition of the house; Article 5 subparagraph 6 (i) of the Act, subparagraph 6 (i) of the same Article, Article 15 (1) of the Enforcement Decree of the same Act provides that the former house shall be non-taxable for the income tax on the previous house; Article 198 (2).

On December 18, 1985, the court below acknowledged that the plaintiff and his family were residing in the house from March 19, 1987 when acquiring the land of 202 square meters and 192.72 square meters of the land of this case on December 18, 1985, and that the plaintiff and his family were living in the house from March 19, 1987. On December 19, 1990, after newly acquiring the house of 43 square meters of the former ○○○○○-dong △△△△△△△ △ △ △ △ △ △ △ △ △ △ △ △ △ △ △ on May 24, 191, the previous house was transferred on May 24, 199, while residing in the house of this case on January 12, 193, and moved the house of this case to the new house with his spouse for more than three years. The court below was justified in its determination that all of this case was justified.

In addition, the conclusion is not different on the ground that three children of the Plaintiff, like theory, are students of the school from the school of various levels, and the school is in the vicinity of the previous house, and the purchaser of the house was unable to complete the lease contract with the purchaser, and the owner of the house continued to reside in the new house of this case for a period of one year or less. The argument is without merit.

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Yong-hun (Presiding Justice)