BTS’s J-Hope Makes 1.65 Billion KRW With One Single Deal

According to reports on July 29, KST, BTS member J-Hope recently increased his wealth by ₩1.65 billion KRW (about $1.19 million USD) with one single deal.

J-Hope | @uarmyhope/Instagram

The deal in question was the sale of one of his luxury properties in Seonsu-dong, Seoul, which he had purchased nine years ago. As per the real estate industry and the Supreme Court’s registry office, J-Hope sold the 84-square-meter Trimage apartment unit in March this year for ₩4.00 billion KRW (about $2.88 million USD).

The original purchase price of the unit was approximately between ₩1.26 billion KRW (about $904,000 USD) to ₩1.36 billion KRW (about $975,000 USD). Considering that he didn’t take any loans for the purchase, J-Hope’s capital gain from the sale is estimated at around ₩2.70 billion KRW (about $1.94 million USD).

However, given that the capital gains tax is estimated to be about ₩1.04 billion KRW (about $750,000 USD), the net profit the BTS rapper earned is actually ₩1.65 billion KRW (about $1.19 million USD). According to the current Income Tax Act, capital gains for multi-homeowners are subjected to an additional 20-30% points on top of the base rate (6-45%), depending on the number of properties they own. However, this heavy taxation policy is suspended until May next year. Hence, J-Hope is believed to have been taxed only at the highest base rate (45%), given his capital gains were above ₩1.00 billion KRW (about $719,000 USD).

J-Hope still owns a 152-square-meter unit in the same Trimage complex and two units in Apelbaum Hangang in Seobinggo-dong, Yongsan. Based on the purchase prices of these properties, the total value of the homes owned by the BTS member is estimated to be ₩27.0 billion KRW (about $19.4 million USD).

Consequently, J-Hope’s property tax burden is expected to be relatively high. Since the ownership transfer of the Trimage unit he sold occurred after June 1, J-Hope’s annual property tax liability calculations will consider him a four-homeowner instead of three. According to the estimates of financial experts, his tax liability for this year is expected to be around ₩66.6 million KRW (about $47,900 USD) in property tax and ₩422 million KRW (about $304,000 USD) in comprehensive real estate holding tax.

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