1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Details of the disposition;

A. On September 5, 2014, the Plaintiff acquired from B, on September 5, 2014, a house of 50.2 square meters in Busan Jin-gu, Busan and 50.2 square meters in the above ground block structure, reinforced concrete roof (hereinafter “instant real estate”), and changed the purpose of use of a housing unit of 1st floor into a Class II neighborhood living facility, and sold it to D on March 14, 2016.

B. On May 18, 2016, the Plaintiff: (a) filed a preliminary return with the Defendant on the transfer value of the instant real estate at KRW 220,814,740 (=acquisition value = KRW 148,264,740; and (b) KRW 72,550,00 as necessary expenses).

C. On July 27, 2016, the Defendant denied the construction cost of KRW 66,420,000 for the interior repair of the building and the alteration of the purpose of use of the housing of the first floor (hereinafter “instant construction cost”) among the necessary expenses, and notified the Plaintiff of a pre-announcement of taxation that capital gains tax of KRW 14,671,413 reverted to the year 2016 shall be imposed on the Plaintiff on July 27, 2016, and upon the Plaintiff’s request for pre-assessment review, the Defendant subsequently notified the Plaintiff of KRW 13,873,540 that capital gains tax corresponding to the transfer income tax of KRW 13,873,540 reverted to the year 2016, recognizing only three million as necessary expenses

(hereinafter “instant disposition”) D.

On December 8, 2016, the Plaintiff filed an objection with the Commissioner of the Busan Regional Tax Office on the instant disposition, but was dismissed on January 3, 2017. On April 10, 2017, the Plaintiff filed a petition for adjudication with the Tax Tribunal, but was dismissed on June 28, 2017.

[Reasons for Recognition] Facts without dispute, entry of Gap evidence 1 through 5 and evidence 12 (including each number, hereinafter the same shall apply), entry of Eul evidence 1 and 2, and purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The instant construction cost asserted by the Plaintiff is the cost disbursed for the purpose of improving the purpose of use or convenient use of the instant real estate, i.e., capital expenditure, and the instant disposition based on a different premise.