How to Use the Presale Right Capital Gains Tax Calculator
Korea taxes the resale of a "presale right" (bunyangkwon) — the right to move into an apartment before it's built — at a flat 70% rate if held under a year and 60% if held a year or more, no matter the seller's income. There is no identical U.S. rule, since American pre-construction contracts work differently. The closest real equivalent is "assignment of contract," where a buyer sells their purchase contract on a pre-construction condo to another buyer before closing — commonly called flipping a contract.
Because the assignor never actually takes title to real property, the IRS generally treats assignment profit as ordinary income taxed at your marginal federal rate, regardless of how long you held the contract. Some practitioners argue long-term capital gains treatment may apply if the contract itself was held over a year, but this is not settled and varies by circumstance — always confirm with a licensed tax professional before relying on it.
This calculator estimates gain (assignment price minus your original deposit, upgrade payments, and closing fees) and applies representative rates — 24% for contracts assigned within 12 months and 15% for those held longer — purely for illustration. It excludes state tax, which varies widely and can add several more percentage points.
Frequently Asked Questions
No. Korea taxes presale-right resale at a flat 70%/60% rate regardless of income. The U.S. has no identical rule — this tool models the closest real concept: selling (assigning) a pre-construction purchase contract before closing, which the IRS generally taxes as ordinary income.
It's uncertain. Because you never took title to real property, the IRS may treat all assignment profit as ordinary income no matter how long you held the contract. This calculator shows both scenarios as estimates only — confirm your situation with a tax professional.
It uses representative federal rates: 24% for contracts assigned within 12 months (ordinary income bracket) and 15% for contracts held 12 months or more (long-term capital gains). Your actual rate depends on your total income and state taxes, which are not included.