RESPrep
Start free

RES exam question on Taxes & Duties: Ms Neo bought a condominium on 1 August 2025 for $1,500,000

HardProperty Taxes (BSD, ABSD, SSD) · Paper 2

Ms Neo bought a condominium on 1 August 2025 for $1,500,000. She later grants an Option to Purchase at $1,600,000, which her buyer exercises on 20 July 2026. The unit's market value on that date is $1,650,000. Her salesperson explains her Seller's Stamp Duty. (i) The sale falls within her first year of ownership, so SSD is charged at 16%. (ii) The duty is charged on the $1,650,000 market value, as it exceeds the $1,600,000 price. (iii) As her gain is only $100,000, her SSD is capped at the amount of that gain. (iv) Her Seller's Stamp Duty comes to $264,000. Which of the statements above is/are correct?

  1. A(i) and (ii) only
  2. B(i), (ii) and (iv) only
  3. C(ii), (iii) and (iv) only
  4. D(i) and (iii) only
Show answer & explanation

Answer

B. (i), (ii) and (iv) only

Explanation

Answer: (i), (ii) and (iv) only. SSD is charged at 16% in the first year on the higher of price and market value, whether or not there is a gain.(i) True. The date of sale is 20 July 2026, when the buyer accepts the option. That is within a year of 1 August 2025, so 16% applies.(ii) True. SSD is charged on the higher of the selling price and the market value at the date of sale, here $1,650,000.(iv) True. 16% × $1,650,000 = $264,000.Rule: For residential property bought on or after 4 July 2025, SSD is 16% for a sale within 1 year, 12% within 2, 8% within 3 and 4% within 4 years. It is charged on the higher of the selling price and market value at the date of sale, the date the buyer accepts the option, gain or no gain.Source: IRAS, Seller's Stamp Duty (SSD) for Residential Property (read 1 Oct 2026); /learn/stamp-duties-bsd-absd-ssd

Why the other options are wrong

  • (iii) False. SSD does not depend on profit, so there is no cap at the gain.

Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)

Practise more Property Taxes (BSD, ABSD, SSD) questions

Drill the full Property Taxes (BSD, ABSD, SSD) bank with instant answers and explanations — free to start, no card needed.

Practise Property Taxes (BSD, ABSD, SSD) →More sample questions

Try a timed set: sit a free RES mock exam, no sign-up needed. Or see the passes for the full question bank.

Related Property Taxes (BSD, ABSD, SSD) questions

Get each day's lesson free — one RES topic + the trap, every day on Telegram.

Join @resprepsg →

Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.