Determination of the Acquisition Date for Gains from Appreciation
In this context, regardless of the method of acquisition (except for those acquired gratuitously), the gains arising from the disposal of goods such as lands, buildings, mines, quarries, ships and rights registered as real estate, the details of which are listed in Article 70 of the Law, within five years starting from the date of acquisition, are considered as gains from appreciation.
The term "disposal" in this article refers to the sale, assignment for consideration, bartering, expropriation, and capitalization in trade companies of the above-mentioned goods and rights.
However, in practice, it is observed that the beneficiaries are uncertain about the calculation of the relevant five-year period and request an opinion from the Revenue Administration or the relevant authorities in order to resolve the hesitations regarding the starting date of the five-year period.
The opinions of the relevant authorities include following statements in sum;
“Even if the date of acquisition in real estates is accepted as the date of registration to the title deed and these dates are first acquisition dates of the real estate, if any type change is made on the title deed records as a result of the zoning application of the municipality regarding the real estates in question; the registration of the said zoning change to the title deed shall be considered as a new acquisition and the gain to be obtained from the sale of the said real estates within 5 years from the date of the type change shall be taxed as gain from appreciation in accordance with… "
(Izmir Tax Office Directorate - Date: 12.08.2020 - Subject: Regarding the date to be taken into consideration as the date of acquisition in the sale of real estates located within the zoning plan but not yet subject to the zoning application).
As seen in the opinion issued by the relevant authority on whether the gain obtained shall be considered as gain from appreciation and whether it shall be subject to tax in this discretion; the date of the beginning of the relevant five-year period is accepted as the date of the type change on the title deed records as a result of the zoning application, not the date of the first acquisition of the real estate.
Other opinions of the authorities on this subject, it is seen that the subject is evaluated in a similar manner and the starting date is taken as the date of the change of type:
“The date on which the field registered in your name in the title deed is assigned and registered in your name as a cherry orchard within type classification is accepted as the date of acquisition and the gain obtained from the transfer to other shareholders within 5 years is declared as gain from appreciation...”
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In this respect, it is seen that with various opinions, the view that the date of registration of type change (i.e. the transition from field to land) to the title deed is taken as the date of acquisition of the real estate, not the date of the first acquisition. However, it is clear that this view is not correct. In any case, if there is an issue with the tax administration, a lawsuit should be filed and the judgement of the judiciary on the concrete case should be requested. Otherwise, it will be against the beneficiaries to accept the acquisition date as the date for any change to be registered.
