object or not of flats with shopsbuilder for the real estate sale business

                                                                                                                       31^st Jan2018

                                                                                                                       Written by Yu Jung,Choi

                                                                                                                       Translated by EunKyung, Park.

1,Outline

Whenflats with shops builder sales it, preliminary declaration for the realtydealer should be filed or not.

2.Fact

 (1) “A” built 10 stories building in theKumcheon Gu, Seoul

 (2) Building composition: 1^ststory~3^rd story shopping district, 4^th story ~ 8^thstory: efficiency apartment. 9^th story~10^th story :multiplex housing.

Letme investigate 2 cases.

 1) Sell separately 2) Sell each house andshops as one.

3.Real estate sale business

(1)Description of real estate sale business

(2)Classification of construction business and sale in income tax law.

4.Conclusion

Case1) Selling each unit: If shop's area is over 10% of house's total area, houseis regarded as building house sale business and shop is regarded as real estatesale business.

Thereforepreliminary filing for the real estate sale business for shop should be filed.

Case2: taking whole unit as one:

Ifhouse area is bigger than shop area, whole building is seen as house and it isregarded as house building sale business.

Preliminaryfiling is not needed.