Inheritance of property – fiscal legislation on real estate inheritance in Germany
When you inherit real estate in Germany, in addition to the emotional burden, there is usually also uncertainty concerning the process and tax laws for inherited real estate and other property. This concern is understandable, as people are not initially confronted with inheritance law and the resulting inheritance tax on the real estate until the case arises.
The regulations regarding inheritance tax are complex and subject to constant change. Before accepting or rejecting the inheritance, it is essential to find out the variables regarding the composition and value of the real estate and to include them in the valuation of the heritage. If there are other co-heirs to consider, the property requires renovation or is encumbered with a mortgage. It is important to weigh things up carefully and not value the property in isolation but as part of the estate. It is vital to inform the relevant tax office of the inheritance within three months if the heritage will be accepted. If this does not occur, you may possibly be considered guilty of tax evasion.
Determining the market value of the property
Especially in the case of valuable real estate, inheritance tax on real estate can lead to an enormous financial burden for the heir. Therefore, when determining the amount of inheritance tax to be paid, the first step is to determine the market value of the real estate. For this purpose, the income you can generate with the property (for example, on the rental market) is usually used to determine the value. However, if this is not possible, the asset value method is used.
Optimization of tax allowances in the case of real estate inheritance
Unlike the inheritance of capital assets, which will be taxed to a full extent except for a personal allowance, there is considerable potential for savings when calculating the allowances for inheritance tax on real estate.
Decisive factors here are, for example, estate liabilities, pension allowances, the degree of kinship to the deceased, and the type of use of the property. In this way, heirs of a property used by the deceased himself, such as his parents' house, can claim considerable advantages regarding inheritance tax.
Competent support for your inheritance
With Alexia Huber & Partner Steuerberatungsgesellschaft you benefit from our expertise and specialized knowledge of inheritance tax law on real estate.
We support the run-up to the inheritance through the drafting and tax optimization of contracts and wills.
With us, you will receive comprehensive support and advice that will help you to efficiently comply with necessary procedures when inheriting real estate and you may experience substantial savings on the amount of inheritance tax due.
We offer specialized services and support and professional advice to resolve inheritance tax issues for real estate:
- Optimization of gift tax and inheritance tax on real estate in the context of anticipated succession through gifting
- Preparation of tax-optimized wills and inheritance contracts
- Tax advice on the optimal use of tax allowances for inheritance tax purposes
- Tax valuation of real estate for inheritance tax and gift tax purposes
- Submission of gift tax returns and inheritance tax returns
- Preparation of appeals against inheritance and gift tax assessments
- Personal tax advice
Online bookkeeping / digital voucher booking
We take over the complete, careful and on time handling of all accounting work, including advance VAT returns. In the course of digitisation, the DATEV software "Unternehmen online", which we use, offers uncomplicated methods for recording all receipts and for creating an online accounting system. In the case of self-bookers, we take over your data and import it into our system.
We are at your side with words and deeds
Simply contact us via our contact form or give us a call
Output and its equivalent should be in harmony within the scope of tax consultancy and management consultancy as well as consultancy for business start-ups. We will be happy to advise you.
The satisfaction of our clients is our top priority. Together we will examine your tax situation in an initial consultation and advise you individually on your tax issues. Contact us via our initial consultation form.