Business

Japan to extend tax cuts for sales of inherited houses

JIJI

Japan’s government and ruling bloc are considering extending tax breaks for those who sell houses they inherited from their parents by four years until the end 2023, sources have said.

The tax cut extension is aimed at helping shore up real estate trading and preventing an increase in the number of unoccupied houses, the sources said.

Under the system, which covers houses that were built on May 31, 1981, or before, income and residential taxes are reduced under certain conditions.

If people live apart from their parents, the parents’ houses inherited by the children are highly likely to become unoccupied in the future.

The number of empty houses in Japan, excluding those for rent and sale, stood at 3.18 million as of 2013.

The figure is expected to increase further reflecting the country’s falling population, becoming a major problem across the country.

The government aims to curb the pace of growth, estimating the number of empty houses at about 4 million by 2025.