{"id":291,"date":"2025-07-31T19:48:10","date_gmt":"2025-07-31T10:48:10","guid":{"rendered":"https:\/\/japantaxsupport.com\/taxation\/real-estate\/"},"modified":"2026-03-31T17:53:56","modified_gmt":"2026-03-31T08:53:56","slug":"real-estate","status":"publish","type":"page","link":"https:\/\/japantaxsupport.com\/en\/taxation\/real-estate\/","title":{"rendered":"Real Estate Transactions"},"content":{"rendered":"\n<section class=\"p-tax-crossborder__intro inner c-sec c-intro\">\n  <img decoding=\"async\" src=\"https:\/\/japantaxsupport.com\/wp\/wp-content\/themes\/japantaxsupport\/assets\/images\/taxation\/realestate\/intro01.jpg\" alt=\"\" class=\"c-intro__img\"\/>\n  <div class=\"c-intro__word\">\n    <p class=\"c-intro__word-ttl\">\n When is the best time to sell your home in the U.S.?\n    <\/p>\n    <p class=\"c-intro__word-txt\">\n The timing of your U.S. home sale can have a significant impact on your tax obligations in Japan.\n    <\/p>\n  <\/div>\n<\/section><!-- \/c-intro -->\n<section class=\"p-tax-crossborder__main inner c-group\">\n  <h3 class=\"c-medttl\">\n If the sale is completed before returning to Japan\n  <\/h3>\n  <p>\n    <span class=\"c-strong c-marker\">Since all tax procedures are completed in the U.S., there is no need to file a separate return in Japan.<\/span> We believe this is the simplest and safest approach.\n  <\/p>\n<\/section><!-- \/c-group -->\n\n<section class=\"p-tax-crossborder__main inner c-group\">\n  <h3 class=\"c-medttl\">\n If the sale is completed after returning to Japan\n  <\/h3>\n  <p>\n    <span class=\"c-strong c-marker\">\n You will need to handle tax procedures in both the U.S. and Japan.\n    <\/span>\n  <\/p>\n\n  <h4 class=\"c-smallttl\">You May Qualify for the \u00a530 Million Special Deduction<\/h4>\n  <p>\n <span class=\"c-strong c-marker\">In Japan, if you sell a home you previously resided in and realize a profit, you may be eligible for a special deduction of up to \u00a530 million which can exempt that profit from taxation.<\/span> However, you will need documentation, such as utility bills, to prove actual residency in that home.\n  <\/p>\n\n  <h4 class=\"c-smallttl\">Potentially Lower Tax Rates<\/h4>\n  <p>\n If you have owned the home for more than five years as of January 1 of the sale year, the combined tax rate (income tax + inhabitant tax) will be slightly lower at 20.315%.\n  <\/p>\n\n  <h4 class=\"c-smallttl\">You Can Deduct U.S. Taxes Paid<\/h4>\n  <p>\n You can use the Foreign Tax Credit to deduct U.S. taxes paid from your Japanese tax liability.\n  <\/p>\n\n  <h4 class=\"c-smallttl\">Be Aware of Calculation Differences Between the U.S. and Japan<\/h4>\n  <p>\n Certain U.S. tax rules, such as &#8220;step-up in basis&#8221; under community property laws, are not applicable for tax calculations in Japan, so caution is required.\n  <\/p>\n\n  <div class=\"c-point\">\n    <h4 class=\"c-point__ttl\">Point<\/h4>\n    <p>\n      <span class=\"c-strongred\">When you sell your U.S. residence after returning to Japan, Japanese tax law requires that the acquisition cost and sale price be converted into Japanese yen at the respective exchange rates, and that the capital gain or loss be calculated on a yen basis.<\/span> As a result, where the yen has depreciated since the time of acquisition, the yen-denominated gain may be larger than the gain calculated in U.S. dollar terms, and in some cases, a capital gain may arise in yen terms even if the transaction results in a loss in U.S. dollar terms. Please note that this may result in additional tax liability in Japan.\n    <\/p>\n  <\/div>\n<\/section><!-- \/c-group -->\n\n<div class=\"c-pagenavi\">\n  <a href=\"https:\/\/japantaxsupport.com\/en\/\/taxation\/crossborder\/\" class=\"c-pagenavi-btn c-btn --prev\">Previous<\/a>\n<a href=\"https:\/\/japantaxsupport.com\/en\/\/taxation\/retirement\/\" class=\"c-pagenavi-btn c-btn --next\">Next<\/a>\n<\/div><!-- \/c-pagenavi -->\n","protected":false},"excerpt":{"rendered":"When is the best time to sell your home in the U.S.? The timing of your U.S. home sale can have a significant impact on your tax obligations in Japan. If the sale is completed before returning to Japan Since all tax procedures are completed in the U.S., there is no need to file a separate return in Japan. We believe this is the simplest and safest approach. If the sale is completed after returning to Japan You will need to handle tax procedures in both the U.S. and Japan. You May Qualify for the \u00a530 Million Special Deduction In Japan, if you sell a home you previously resided in [&hellip;]","protected":false},"author":1,"featured_media":0,"parent":106,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"page-taxation.php","meta":{"footnotes":""},"class_list":["post-291","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/pages\/291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/comments?post=291"}],"version-history":[{"count":13,"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/pages\/291\/revisions"}],"predecessor-version":[{"id":806,"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/pages\/291\/revisions\/806"}],"up":[{"embeddable":true,"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/pages\/106"}],"wp:attachment":[{"href":"https:\/\/japantaxsupport.com\/en\/wp-json\/wp\/v2\/media?parent=291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}