What do I need to consider for inheritance tax on an inherited property?
January 1, 2022 | 50,00 EUR | answered by Mia Pilz
Dear tax advisor,
I am currently facing the situation that I have inherited a property and now have to deal with the issue of inheritance tax. The property has an estimated value of 500,000 euros and was owned by my deceased father. I am unsure of the tax aspects I need to consider when taking over the property and how high the inheritance tax could be.
My main concern is to minimize unnecessary tax payments as much as possible and to take over the property as efficiently as possible. I have little experience with tax matters so far and therefore rely on your expert advice.
I am worried that I may make mistakes in calculating the inheritance tax and that this could lead to financial disadvantages. I want to make sure that I consider all relevant factors and do not overlook any tax pitfalls.
Could you please explain to me exactly what I need to consider for the inheritance tax on the inherited property? Are there ways to minimize the tax burden or take advantage of tax benefits? What specific steps should I take to correctly calculate and pay the inheritance tax?
Thank you in advance for your help and support.
Sincerely,
Maria Fuchs
Dear Mrs. Fuchs,
Thank you for your inquiry regarding inheritance tax in relation to the inherited property. I understand that you are in a complex situation and unsure of which tax aspects you need to consider. I am happy to provide you with my expert advice and will explain all relevant information regarding inheritance tax for properties.
When taking over an inherited property, you first need to determine the value of the property. In your case, the estimated value is 500,000 euros. This value forms the basis for the calculation of inheritance tax. It is important to note that inheritance tax in Germany is structured progressively, meaning the higher the value of the inherited assets, the higher the tax burden.
Various tax-free amounts are taken into account for the calculation of inheritance tax, which depend on your degree of relationship to the deceased. As the daughter of your deceased father, you have a tax-free amount of 400,000 euros. This means that only the amount above this tax-free amount will be taxed, in your case 100,000 euros.
To minimize the tax burden, there are various options available. Firstly, you can utilize tax breaks such as the maintenance allowance or the pension allowance to reduce the tax burden. Secondly, you can consider tax planning options such as using tax-free amounts or dividing the estate among multiple heirs.
It is important to carefully review all relevant documents and, if necessary, consult a tax advisor to avoid errors in the calculation of inheritance tax. I recommend contacting the relevant tax office early on and submitting the inheritance tax declaration on time.
I hope that I have been able to assist you with this information and am happy to answer any further questions you may have. Thank you for your trust and I wish you success in taking over the inherited property.
Sincerely,
Mia Pilz
