Tax on inheritance from close relatives 2023

There is no inheritance tax for close relatives in 2018. Starting in 2006, changes came into force in the Tax Code of the Russian Federation, which abolished this mandatory payment.

When do you need to pay inheritance tax for close relatives in 2018?

However, there are exceptions in which individuals receiving income from certain types of past activities of the testator must pay this fee.

In 2018, inheritance tax for close relatives will have to be paid if the testator’s estate includes:

1. patented scientific activities;
2. trade in art objects;
3. author's literary works;
4. industrial inventions.

Important! When opening an inheritance for property, the heirs will have to pay a tax rate of 13%.

Also, an inheritance with an estimated value of over 850 thousand rubles received before 2006 is subject to a payment exception. Thus, it will be necessary to first pay the tax on property registered by inheritance, and only then enter into inheritance rights.

What circumstances affect the payment of inheritance tax?

Which method, by will or without a will, the inheritance was received does not play a role when determining the amount of tax on the inheritance of close relatives.

Here, such circumstances are taken into account as: the degree of relationship of the heir to the testator, the estimated value of the inheritance, whether the heir lived with the testator in the same house or apartment, whether the heir has appropriate benefits, his physical capacity.

State duty on inherited property

There is no direct tax collection for the most common types of inherited property. However, according to the Tax Code of the Russian Federation, when registering inheritance rights, an indirect tax is imposed on the notary office that conducts the transaction.

The indirect fee is a state duty that must be paid to each heir. The notary office does not set the amount of this fee; it is determined by the state in the Tax Code.

According to Article 333, paragraph 22 of the Tax Code of the Russian Federation, the amount of the state duty that must be paid when entering into an inheritance depends on the degree of relationship with the testator.

In other words, the tax on inheritance from close relatives in 2018 is calculated based on the marital status occupied by the heir in the testator’s family.

Amounts of state duty on the property of the testator

In accordance with paragraphs 8 and 9 of paragraph 25 of Article 333 of the Tax Code of the Russian Federation, the estimated value of inherited property can be carried out by a legal entity or an independent expert who has the appropriate license to conduct an examination of the value assessment.

Clause 1, clause 22 of Article 333 of the Tax Code of the Russian Federation states that for registration of ownership rights for the immediate family of the deceased, a fee of 0.3% of the amount of the inherited property must be paid.

It also states that the amount of the duty should not exceed 100 thousand rubles.

Such relatives include:

1. spouse;
2. natural and adopted children;
3. parents;
4. brothers and sisters.

When registering an inheritance, the remaining relatives will have to pay a state fee in the amount of 0.6% of the estimated value of the property under the will. In their case, the maximum amount of state duty should not exceed 1 million rubles.

Who is exempt from paying inheritance tax

Clauses 11 and 12 of clause 22 of Article 333 of the Tax Code of the Russian Federation also list persons exempt from paying state duty when receiving inherited property.

These include:

• heroes of Russia and the USSR;
• veterans of the Second World War and other military operations;
• contract employees and military personnel;
• awarded the Order of Glory;
• disabled people of groups I and II.

Another group of people who will not need to pay a fee when registering an inheritance are citizens who lived with the testator in the same house or apartment for more than six months. They must also live in the same residential premises at the time of payment of the established fee.

Estimation of the value of inherited items for payment to the state

The most common types of inherited property, such as an apartment, dacha, house, car, are often transferred without a will and are not subject to tax.

However, since the fee is a percentage of the assessed value of the estate, an appraisal of the property must be carried out. The heir has the right to independently choose a specialist who will carry out the procedure.

By receiving a documentary conclusion from the examination of the market value and cadastral value of the property, it is possible to determine the amount of the state duty. Despite the fact that registering an inheritance is often a long and difficult process, many documents can be completed independently, which will help save significant money.

The procedure and nuances for determining the estimated value of the testator's property

State duty is paid on real estate. Its amount depends on whether the heir lived with the owner or not. If there is a fact that the heir lived with the testator for more than six months, he is exempt from payment.

If such a fact has not been established, taxes upon inheritance of real estate by close relatives are calculated from:

1. inventory assessment;
2. market value estimates;
3. cadastral value assessments.

If an inheritance is registered for a land plot, the tax is based on the estimated value of the plot.

Valuation of real estate and movable property for payment of mandatory payments

After concluding a written agreement with the Roregister or a specialized bureau, a package of documents may be required to conduct the assessment.

Among them:

• death certificate of the owner;
• heir's passport;
• documents confirming the ownership of the deceased;
• cadastral plan.

To calculate the estimated value of a land plot, experts take into account its size, whether there are communications, and its location relative to highways.

On average in Russia, the cost of such an assessment varies within 3 thousand rubles.

Important! Based on the results of the assessment examination, the customer is issued an assessment report. It is drawn up in writing, indicating the date, without ambiguous interpretations, which contains complete information about the appraisal site, a link to the agreement with the customer and has the seal and signature of the responsible person.

Tax on inherited car

The essence of calculating the tax on a vehicle is generally no different from the tax on inheritance of real estate of a close relative. After registering the inherited property, the heir will need to register the car with the traffic police.

Cost of tax in case of sale of inheritance

If a citizen wishes to sell property, the right to which he received within less than 3 years from the date of registration of the inheritance, he is also required to pay income tax in the amount of 13%.

After 3 years from the date of receipt of ownership, personal income tax will not be charged.

, a tax deduction can simplify the situation . However, to obtain it, you need to prepare a package of documents, which should include:

1. application for a tax deduction;
2. contract for the sale of property;
3. Owner's TIN;
4. documents confirming payment of taxes for a certain period.

Thus, formally, no tax on inherited property of close relatives is paid in 2018. However, a state fee has been established to formalize the rights of the new owner to the testator’s things. Moreover, its size depends on the value of the entire inherited property, which requires an appraisal examination.

Inheritance taxes in England and Wales: how it works and why it is important to make a will

As a rule, in the UK, inheritance consists of real estate, securities and funds in bank accounts. However, according to statistics, only a third of UK residents have written wills, and among residents over 55 years of age, two thirds of the population have wills.

The main argument for not making a will is usually the small size of the intended inheritance.

However, even in this case, a correctly drawn up will can help avoid possible disputes and claims from third parties after the death of the testator, and in some cases, significantly reduce the amount of inheritance tax. And sometimes even relieve the heirs from paying any taxes.  

IFS Consultants advisor Igor Persidsky tells how it all works in England and Wales.

Mandatory share in inheritance

Unlike Scotland, where a mandatory share of the inheritance for children, spouse or civil partner is established by law, in England and Wales there is no such rule. In other words, the testator can exclude his children, spouse and other close relatives from the inheritance in full, with the exception of persons who were dependent on the testator at the time of his death.

From the history of the issue

Inheritance taxation in England was first established by the Stamp Act in 1694 to finance the war with France.

This law was adopted following the example of a similar rule in the Netherlands. In the first year of the law, the English treasury collected about 50 thousand pounds sterling.

In 1986, inheritance tax reform was carried out in England and Wales - then it acquired its modern form.

Modern inheritance tax rules

As a general rule, inheritance tax is 40%. It applies to all property passed by inheritance. It is also necessary to take into account the retrospective application of this tax over the previous seven years.

In other words, inheritance tax applies to all property that was donated, sold below market value, or otherwise transferred for the benefit of third parties during the seven years preceding the death of the testator.

Depending on how long ago the property was transferred, this rate decreases over time: to 32% after 3 years, 24% after 4 years, and so on until 0% after seven years preceding the date of death of the testator.

It is important to note that when inheriting between spouses who have a properly registered marriage or civil partnership, no taxes arise.

Deductions

Despite the high tax rate, the following types of tax deductions are provided for inheritance:

Personal tax deduction

The first £325,000 of an inheritance is subject to zero tax. This deduction amount is fixed in law at least until April 2021.

This personal deduction is subject to summation, for example, in the case when the inheritance is passed from one deceased spouse to another and subsequently from the second deceased spouse to their descendants.

Additional tax deduction

The zero tax rate also applies to an additional 150 thousand pounds (from April 2020 - 175 thousand) - on real estate that is the main place of residence of the testator. But if the inheritance exceeds the £2 million threshold, this deduction is reduced by every £1 above the threshold.

Thus, the total amount of deduction from one testator can be up to 475 thousand pounds (500 thousand - from April 2020). From two testators who were in a registered marriage or civil partnership, the deduction amount can reach 950 thousand pounds (1 million pounds - from April 2020).

Domicile

The domicile of the testator also plays a vital role in inheritance tax planning.

When the testator is not UK domiciled, only his UK assets are subject to local tax rules.

Conversely, if the testator acquired (or had from birth) a UK domicile, all his property, including abroad, is subject to local tax rules.

Domicile is a rather complex concept from private international law that defines the “permanent home” of the taxpayer. Typically, domicile is independent of the individual's tax residence and complex rules apply to determine it.

In short: Tax law stipulates that a taxpayer is UK domiciled if: (1) they have lived in the UK for 15 years out of the last 20 years, or (2) have had a permanent home in the UK for the previous three years.

To accurately determine the domicile of an individual, you should contact tax specialists who can conduct a detailed analysis.

The role of a will in tax planning

A correctly drawn up will will not only help avoid possible disputes and claims from third parties after the death of the testator, but also in some cases can significantly reduce the amount of inheritance tax, and sometimes even relieve the heirs from paying any taxes. Under the law of England and Wales, there are three ways to make a will: write the will yourself and sign it in the presence of witnesses, contact a lawyer, or contact a professional will writer. It is also important to appoint two trustees - executors, who will deal with the distribution of the inheritance. Typically, these are either professional executors, lawyers, or relatives of the deceased. It is preferable that they be younger than the testator himself.  

The larger the estate and the number of heirs, the more complex the will, as a rule. To avoid invalidation of a will, it is recommended that it be drawn up by professionals, since an invalid will will be subject to the rules of legal inheritance, which can lead to negative consequences.

Igor Persidsky

Advisor, IFS Consultants, London

www.interfis.com

 [email protected]

 +44 20 7291 5633‬‬‬

Inheritance tax for close relatives on sale in 2023-2023

One of the main questions people have when buying, selling, gifting or inheriting real estate is whether they will have to pay tax? The RIA Real Estate website, together with lawyers, decided to make a tax reminder for owners, sellers and recipients of real estate. If property is inherited by will or law, do you have to pay taxes? When receiving real estate as an inheritance, there is no need to pay personal income tax. Taxpayer responsibilities arise for the heir after registration of ownership of the inherited real estate.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to find out how to solve your particular problem, please use the online consultant form on the right or call the numbers provided on the website. It's fast and free!

Content:

• Inheritance tax for close relatives in 2023 for pensioners
• Tax on inheritance from close relatives 2023
• Inheritance tax
• Do I have to pay inheritance tax or duty?
• Individual entrepreneurs and self-employed people are exempt from tax on the sale of real estate and cars
• Inheritance tax for close relatives in 2023 without a will
• Inheritance taxes for close relatives in 2023
• Non-residents do not have to pay tax when selling property
• They will give me a new uniform
• Personal income tax-free when selling your only home: the previous period of ownership will be returned

WATCH THE VIDEO ON THE TOPIC: Tax on gifts from family members or close relatives

Inheritance tax for close relatives in 2023 for pensioners

Sports law Tax on inheritance of an apartment of close relatives in the year This year, the deadlines for calculating the tax on the sale of an apartment received by inheritance have not changed.

We will look at how to apply a tax deduction, what to do with a share in inherited housing and answer other questions.

Even 10 years ago, a law was passed abolishing the payment of tax when inheriting movable or immovable property under a will. This means that if the apartment was given to you by the will of the deceased, you are exempt from paying tax upon taking possession.

They are given 30 days to express their will: Tax on the sale of an apartment received by inheritance in the year If after this period there is no reaction, you can sell in the future without fear of claims from other persons. Because the degree of relationship does not matter, the tax will have to be paid by the one who sells and receives a monetary profit.

Do not forget that along with the inheritance, the debt obligations of this housing are transferred to the person: Inheritance to an apartment between close relatives - per year, tax, price in the Russian Federation Yes, when selling an apartment received by inheritance, it is possible to receive a tax deduction.

First of all, you need to clarify the cadastral value of the apartment - use it as a starting point when calculating the tax base. The state, in the language of the Tax Code, states that all citizens have the right to a tax deduction when selling an apartment, regardless of whether you inherited it or bought it earlier.

This means that you need to subtract a million from the cadastral value, and take the resulting value as the base when calculating the tax. Such a property deduction should compensate for part or all of the costs of entering into inheritance rights and selling the apartment. The new owner of a house worth 2 rubles decides to sell it immediately.

Subtracting one from two million, we get the base for calculating the tax. And it will amount to rubles, and not as it would be without the deduction.

Every citizen of the Russian Federation can use the deduction no more than once a year. That is, having a couple of properties for sale, you can reduce the tax from any one by 1 million rubles. For purchased housing, they are indicated in the purchase and sale agreement.

The ownership period begins from the date of state registration in the name of the new owner.

To receive tax exemption, you need to contact the Federal Tax Service at your place of registration, write an application and confirm your right to the category with a document: a disability certificate or a pension certificate.

Check with the seller in advance how long he has owned this property and how it came to him. If you know that the apartment has been inherited, inquire about any claims from other relatives.

It is advisable to obtain a notarized waiver of rights to inheritance. Also find out if this apartment has any mortgage debts, liens or other debts. Every citizen of the Russian Federation who has entered into the right of inheritance can dispose of their property by putting it up for sale.

Tax on inheritance of an apartment to a relative in In this case, you will have to pay tax on the profit received. The second option is not always profitable; we are talking more about rooms or one-room apartments.

Read also: If the heir decides to sell the inherited apartment or car, then they will have to pay personal income tax according to the general rules. The tax is paid only if the property has been owned for less than 3 years.

Conclusions Inheritance tax in Russia is a thing of the past. Inheritance tax without a will and with a will is not paid. At the same time, the heirs retained the obligation to pay the state fee for obtaining the certificate.

How was the tax calculated earlier? Before this year, upon entering into inheritance rights, a citizen was obliged to fill out a tax return and pay a tax to the state treasury, in proportion to the degree of relationship with the deceased, if the amount of the inheritance received exceeded the minimum wage by several times.

But, unfortunately or fortunately, cases of receiving such an inheritance are extremely rare, so most heirs should not worry about taxes.

Each heir pays a state fee in an amount proportional to the inherited share.

If a citizen inherited movable and immovable property, money or other material assets of a deceased relative, previously he was obliged to make contributions to the tax office in proportion to the profit received.

However, it has been more than 10 years since certain amendments came into force, and inheritance tax from close relatives may not be paid at all each year. Is inheritance taxation paid in a year? But is everything so rosy, and are there any pitfalls when registering inheritance rights? Let’s try to figure it out.

An indirect tax levy is paid on the heritage of real estate and movable property at the rates established by law.

Indirect fees are also paid by state notary offices, at rates established by law. The amount of the duty is set based on the amount of property, at the rate prescribed by law. If there are several heirs - state duty or direct tax, each pays from his own part. The notary state fee is also calculated for each part of the bequeathed property.

To pay tax on the same day, apply for a loan on a card or in cash using your passport only.

When inheriting land - land, vehicles - transport, etc. Tax on an apartment by will in the year - Acceptance of any property by inheritance requires financial expenses for performing notarial actions and, if necessary, subsequent state registration.

But, according to current legislation, tax on an apartment received by will in Russia, as well as transferred by law, will not have to be paid, with some exceptions, limited only to state duty and some ancillary expenses.

Until a year later, under a different version of the Tax Code of the Russian Federation, each heir had to pay tax on the accepted property. In fact, the inheritance estate was treated by the tax authorities as ordinary profit, and accordingly, the new owner had to pay a standard payment of 13 percent of the value.

At the moment, paragraph 18 of Article of the Tax Code of the Russian Federation is in force, which directly states that tax on inherited property is not paid. The legislator does not differentiate the rights of heirs by law or will.

It does not matter whether the property is transferred to a relative or a non-relative, there is no payment to the state. Inheritance tax in the year The potential costs were in some cases too significant.

For example, citizens who lived together with the testator did not have another place to live and, in the absence of significant income, were forced to sell their property, ultimately being left without a place to live.

This state of affairs forced the legislator to cancel the payment altogether. In addition, the absence of tax on most inheritances is a worldwide practice consistent with the principles of civil law.

It is established depending on the degree of relationship: Legal and technical services are paid directly to the notary, in contrast to the fee, which is paid by receipt.

In essence, this is payment for the specific work of a notary for the preparation of statements and other documents. It may vary depending on the specific specialist, but on average it will range from up to a couple of thousand rubles per document. Registration of an apartment in Rosreestr is carried out after receiving a certificate of inheritance.

Based on this document, the right is re-registered, the object becomes the full property of the heir. At the moment, you need to pay rubles for an apartment, just like for any other residential building.

The payment for land is either rubles or , depending on the category of destination. Similar articles:

Tax on inheritance from close relatives 2023

A declaration campaign has begun in Russia. Citizens must report income received during the year by April 30. The Federal Tax Service draws attention to the fact that a new tax return form is in force this year. The easiest way to submit an income tax return is through your personal account on the website of the Federal Tax Service.

Calculation of the cost of housing during sale will also be regulated by the articles of the new.

When receiving an inheritance, close and distant relatives of the deceased ask themselves: how much will the acquisition cost? Many people have heard about property tax, but few know whether inherited property is taxed? What is the tax amount? Is inheritance taxable? So, do you need to pay tax on your inheritance received this year? In particular, the new law abolished the inheritance tax for close relatives and distant relatives - regardless of the degree of relationship, and also regardless of the method of inheritance - by law or by will. This state of affairs continues to this day, therefore, no matter what property becomes the property of the heirs - an apartment, a car, a plot of land, a garage, a dacha - no inheritance tax is charged!

Do I have to pay inheritance tax or duty?

How long to wait to avoid paying tax on a sale: Taxation 1 Do I need to pay inheritance tax or duty? Inheritance tax Inheritance tax When receiving an inheritance from a relative in the form of cash, property, shares and other objects, it is worth very carefully and scrupulously studying the issue of taxation applied or not applied to the heir.

Entering into inheritance Ukraine - price, term, procedure Lawyers Inheritance tax In modern Russian inheritance law there is no concept of inheritance tax as such. This practice was used for up to a year and implied separate calculations of tax payment, depending on the inheritance line, and was applied to property whose value was more than the minimum wage.

Deadlines for filing a 3-NDFL declaration and paying tax If you sold real estate, you must pay tax on the sale. However, there are legal ways to reduce the tax or not pay it at all.

Previously, persons who received any property in this manner were required to pay a certain amount to the state. However, now people have been exempted from taxes on inheritance acquired by will or law.

Everyone except the legal successors of the results of intellectual activity listed earlier. In this case, the situation is similar to that described above.

Inheritance tax for close relatives in 2023 without a will

Do I have to pay inheritance tax or duty? I am a non-working pensioner, my pension is a little more than 8 thousand rubles. Do I have to pay any tax or duty for an apartment when entering into an inheritance? In accordance with Art.

According to the Tax Code of the Russian Federation, today the heir is exempt from the obligation to pay the state tax on inherited real estate. However, entering into an inheritance cannot be called an absolutely free procedure.

The certificate of the right to inheritance is issued by a notary, who also conducts the inheritance case.

Personal income tax-free when selling your only home: the previous period of ownership will be returned (exceptions - inheritance, gift from close relatives or rent). will be recognized as a tax resident of the Russian Federation in the year (that is, a zero income tax rate for educational and (or)

Inheritance tax under a will in Russia in the year Tax on the sale of an apartment in the year Thus, the government will not only not prevent speculators, but will also complicate the sale of apartments for ordinary citizens.

Calculation of the cost of housing during sale will also be regulated by the articles of the new bill. In order to deliberately understate real estate prices, a special verification scheme has been developed.

Do pensioners pay tax on the sale of an apartment if it has been owned for less than 3 years?

Non-residents do not have to pay tax when selling property

Inheritance tax for close relatives without a will Added: There are two ways to enter into an inheritance after the death of a relative: In the first case, the inheritance is distributed in whole or in part according to the will of the deceased.

In the second, property is inherited depending on the degree of close relationship with the deceased, since the testator did not make a will during his lifetime. Relatives often ask whether it is necessary to pay tax on inheritance from close relatives, and what its amount is.

The owner of the property can dispose of acquired valuables in advance, dividing them among relatives, leaving everything to one person, strangers or organization.

How to ensure the competent transfer of foreign assets to loved ones Yes, man is mortal, but that would not be so bad. The bad thing is that he is sometimes suddenly mortal, that's the trick! Michael Bulgakov.

The Master and Margarita Text: Vladislav Gorobinsky Why planning is necessary Currently, no one is surprised by the presence of foreign assets, primarily real estate, even among representatives of the middle class.

Personal income tax-free when selling your only home: the previous period of ownership will be returned

Sports law Tax on inheritance of an apartment of close relatives in the year This year, the deadlines for calculating the tax on the sale of an apartment received by inheritance have not changed.

We will look at how to apply a tax deduction, what to do with a share in inherited housing and answer other questions.

Even 10 years ago, a law was passed abolishing the payment of tax when inheriting movable or immovable property under a will.

VIDEO ON THE TOPIC: Tax on car sales

Inheritance tax for close relatives - in 2023, without a will, for pensioners, upon sale

The only way to transfer property and rights to it after a person's death is inheritance. There are only two ways to receive an inheritance: to be among the heirs specified in the will or in one of the 8 lines of relatives who have the right to be heirs by law.

The latter method is used if the deceased did not leave a will. The inheritance tax for close relatives is levied at a reduced rate than for others. In case of inheritance, this payment is called state duty.

The inheritance is formalized by notaries (private or public). You can contact anyone, since, according to changes in legislation after 2005, there is no connection to the place of residence of the deceased or heir.

Still, it is better to pay a visit to the notary at the place where the inheritance was opened (at the residence address of the deceased or the location of the most valuable property). Part of the registration procedure is the payment of tax, which in our case means state duty.

All offices can complete this procedure. But, as a rule, not all private notaries handle inheritance matters, so they often turn to state notaries. Plus, their rates are cheaper.

Citizens can accept or refuse the inheritance. They have a period during which they must enter into it - 6 months. It is automatically extended for another six months if any of the heirs refuses the inheritance and for 3 months. , if someone did not accept it.

In other cases, the term can only be restored by the court or if there is written consent of all heirs. If no one accepts the property, then it goes to the state.

To enter into an inheritance, a package of documents is submitted: applications from interested parties, passports, birth certificates (to confirm family ties), will, death certificate, etc.

Based on it, you can re-register the property to the new owner.

The inheritance tax for close relatives has been abolished a long time ago, but when issuing a certificate and registering an inheritance, the law provides for a state duty, and without a receipt for payment of this payment it is impossible to complete the procedure (payment is not required only for preferential categories exempt from taxes by law)

Will there be any charges?

It should be said right away that there are no taxes in the classical sense specifically on inheritance. The procedure under consideration is not subject to them. There is a state fee. But people usually use these two terms, so sometimes the word “tax” is used, but they mean state duty.

The tax, in the traditional sense, is levied upon the sale, or more precisely, upon the subsequent resale of property, for example real estate, after inheritance. This is personal income tax and it is 13% of its cost.

But it is paid only if this property is sold within 3 years after inheritance. After the specified period has passed, it is not paid when reselling real estate that has been inherited.

The absence of inheritance taxes is enshrined in Art. 217 Tax Code of the Russian Federation. It clearly states that inheritance is exempt from them. The abolition took place about 10 years ago, but they were replaced by a payment called state duty: in essence it is the same thing - only the name has changed. The positive thing is that the new payment is significantly less than the canceled one.

Article 217. Income not subject to taxation (exempt from taxation)

No one has yet canceled the rules on state duty, they are in effect, and therefore you will have to pay. The law has exceptions for some citizens who may not pay it. We will talk about them in more detail at the end of this article.

Taxes in the form of state duty upon entering into an inheritance must be paid, since what is received is considered income - it does not matter whether it is in kind or in the form of money.

Without making a payment, the notary will not be able to issue a certificate of inheritance.

Last news

The latest news about innovations regarding the obligation to pay taxes upon inheritance were changes according to which a state duty was introduced instead of a tax.

Its size was significantly reduced, especially for close relatives. For parents, children, spouses it was 0.3% (first priority of heirs), for everyone else, including dependents - 0.6%. But no more than 100 thousand.

and 1 million rubles. respectively.

In comparison, the amount of the abolished tax was much larger, namely from 5 to 20% of the value of the property passed on by inheritance.

There is a draft amendment to the legislation, according to which close relatives will be exempt from any payments. And also, not all property will be taxed, but only real estate, land, and transport. But these changes have not yet been adopted and, apparently, will not be signed in the near future, so the state duty must be paid in 2023.

What tax is calculated for the inheritance of close relatives

Close relatives have advantages over other persons entering into an inheritance - for them the amount of state duty is reduced. Payments are calculated based on the value of the property as a percentage.

The following tariffs are established:

0,3%	For first-degree relatives: spouses, parents, children. But no more than 100 thousand rubles.
0,6%	For everyone else, including non-relatives. But no more than 1 million rubles.

There is one exception: a tax, abbreviated as personal income tax, in the amount of 13% must be paid when inheriting objects related to copyrights and intellectual activity.

The indicated rates apply the same for inheritance without a will and with one. It is worth noting that in the USA the inheritance tax can reach 45%, in Italy – 28%. Despite some problems in legislation, Russia is much more loyal to its citizens in this matter.

It should also be taken into account that the heirs will have to pay payments that are not directly related to the inheritance, but arising from its acceptance and the process of re-registration of property rights.

Here's what else you need to pay extra:

• Private notaries may charge a little more for their services within the limits set by law, but, as a rule, inheritances are processed in state notary offices - the prices there are consistently lower.
• If, according to the rules of ownership of certain types of property, the obligation to pay taxes is provided, then the heir must do this. This applies, for example, to payments such as transport tax. After inheriting a vehicle, it must be paid by the new owner.
• Debts associated with the property of the testator (mortgage, pledge) are transferred along with it to the heir. He is obliged to repay them.
• You also need to pay 13% personal income tax when selling inherited property in the form of real estate within 3 years after its transfer to the heir.
• After entering into an inheritance, the state duty will have to be paid for the re-registration of property (real estate, land, etc.) to the new owner, in the amounts established for the registration authorities.

Property valuation

In order to determine how much to pay tax on the inheritance of close relatives, it is necessary to carry out an assessment of the property.

There is a controversial point on this issue: the law does not prohibit the use of inventory or cadastral valuation - it is often much lower than market prices.

In turn, tax authorities insist on using assessments based on market price analysis, but such requirements have no legal force.

Features of the assessment process:

• For assessment, contact expert organizations or persons with the appropriate license. For property that is subject to state registration, the easiest way is to contact the state register - the value will be indicated in its extract.
• The heir has the right to choose the valuation method.
• The assessment must be current on the day the inheritance is opened. This day is considered to be the date of death of the testator, the day specified in the court decision declaring him dead or the date the decision comes into force.
• The notary has no right to impose any method or type of assessment.

Liberation

Benefits and the right not to pay state duty in 2023 belong to the following categories:

• WWII veterans;
• Knights of the Order of Glory;
• holding the title of Hero;
• persons from 14 to 18 years old ;
• those who inherited houses in rural areas, if they live there and farm;
• owners of houses and apartments in which the deceased had a share, and it is inherited (but subject to living there for at least 6 months after the death of the testator, it is independently inherited without a will (by law) or in accordance with it);
• heirs of intellectual property, since they pay a tax of 13%;
• persons who died in the performance of official, public, state duty, while saving people's lives, while maintaining law and order;
• liquidators of the Chernobyl disaster, categories 1 and 2; Category 3 and 4 – if they work or live in the exclusion zone;
• disabled people with groups 1 and 2.

An old-age pensioner does not have benefits, but local authorities may provide additional benefits to low-income segments of the population.

The citizen must inform the notary himself about the benefits he has. Persons whom the law exempts from paying state duty are listed in Art. 333.38 Tax Code of the Russian Federation. To exercise his right, such a person will need to provide the notary with a document confirming his status (certificate, identification).

Attention!

• Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
• All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.

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Inheritance tax for close relatives in 2023

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The death of a loved one comes as a shock to his relatives. In addition to the funeral, they need to take care of the distribution of property acquired by the deceased. The inheritance procedure does not always go smoothly and is fraught with surprises for new copyright holders. For example, the need to pay funds to the budget. So, do you need to pay tax on inheritance from close relatives?

What changes have the situation with inheritance taxation undergone?

Previously, citizens had to pay funds for benefits received from a deceased relative. The rate was determined based on the degree of proximity to the deceased owner. So, it could amount to 20% of the total value of assets.

However, after Federal Law No. 78-FZ came into force, the need to pay funds to the state in its previously adopted form was abolished.

From the specified time, beneficiaries are not subject to tax, regardless of affiliation with the deceased and the format of inheritance (legal regime or disposition).

Inheritance involves the withholding of funds in the form of duties. An indirect tax is levied on citizens who have acquired their rights by contacting a notary. The exception is cases opened before 2016. So, if the property included in the total inheritance mass is valued at more than 850 thousand rubles, then the tax will still have to be paid according to the old rules.

From whom is the money withheld?

In some situations, depending on the characteristics of the assets being alienated, funds are withheld. Such circumstances include the transfer to the heirs of funds received by the deceased as:

• rewards for the creation of literary works;
• payment for a work of art;
• payments for scientific work;
• rewards for inventive activity, production of industrial designs.

Important! The acquisition of the above assets requires the beneficiary to pay 13% of the amount received. A similar situation arises when selling an apartment that has been transferred from the deceased to a successor before the moment when the period of ownership of the housing is three years. It is worth noting that the second situation occurs much more often than the first.

Legislative requirements for 2023: by will and in general regime

As already noted, today inheritance tax has been replaced by indirect tax, which is levied when receiving assets from a deceased relative.

Payment is made upon receipt of a certificate prepared by a notary for applicants who have submitted the appropriate application.

Thus, in order to register the benefits for yourself, you will first have to pay the required amount and purchase a deed, which will become the basis for completing the procedure for alienating the property of the deceased.

Current legal acts provide for rates depending on the total price of the property, according to which citizens’ funds are collected:

1. 0.3% - for immediate family, but not more than 100 thousand rubles.
2. 0.6% - for other citizens. In this case, the limit on the amount is 1 million rubles.

• Question:
• Who is exempt from tax on acquired inheritance?
• Answer:

According to the Tax Code, a number of categories of citizens are exempt from tax burden. These include: Heroes of the Russian Federation (USSR); Knights of the Order of Glory; WWII participants; heirs who lived with the testator and received living space. Therefore, people closest to the deceased can free themselves from unnecessary expenses and acquire valuables without tax burden.

How is the amount of deductions for real estate determined?

The amount of payments is established based on the price of goods alienated in favor of the heirs. The cost is determined by an independent expert organization. It is important that the property analysis is carried out at the time of the person's death. Otherwise, the information will not be reliable and the tax will be calculated incorrectly.

Assessment can be carried out:

• private appraisers (firms) that meet all the requirements imposed by law (license, qualifications of employees, etc.);
• bodies carrying out cadastral registration, if land is inherited;
• Technical Inventory Bureau or other structures that keep records of real estate at their location.

Important! If the inherited property is represented by financial assets (CB, currency), the price is calculated according to the exchange rate of the Central Bank of the Russian Federation established on the date of opening the inheritance case.

How much do the services provided by a notary office cost?

In addition to the payments established by law, applicants for receiving the assets of the deceased must pay for the services of a notary office. Their value depends on the tariffs set by a particular notary. Technical and legal work carried out by a specialist is paid. It is worth noting that the region of residence of the person in which the case was opened is of great importance.

Thus, there is no amount established by legal acts for the work of a lawyer. You need to clarify the amount of payments in the office itself or on the institution’s website.

It is worth understanding that turning to a specialist for secondary services is not at all necessary.

You can hire your own expert with experience in inheritance law, who can help for a much lower fee or advise the applicant for free.

How to transfer money to the Federal Tax Service against received assets?

Payments will need to be made before the certificate of inheritance is issued. The notary will not perform legally significant actions until he receives a receipt confirming payment of the necessary funds.

To make a payment, a person needs to obtain from a specialist the exact details that should be used during the operation. More often, a citizen receives an already completed document. So, the heir will only have to transfer the required amount.

There are several ways to pay the state fee, which equally guarantee the success of the event:

1. At the cash desk of a banking institution. This method is suitable for those who do not like to deal with technical means. The operator will perform all actions independently. However, this method involves charging a commission.
2. Using a self-service device. The terminal can be found in credit institutions, shopping centers, etc.
3. Through the State Services portal or online banking. After completing the transaction electronically, you need to print a receipt.

Important! The payment document is attached to the general package of papers and handed over to the lawyer.

Conclusion

Inheritance issues sometimes cause problems for successors. Thus, if legal difficulties or other issues arise, you should seek help from a lawyer. He will advise the citizen and help him collect documents to go through all the procedures provided for by the current regulations.

Tax on receipt and sale of inheritance - 2023 | Personal income tax

Do I need to pay tax when receiving
an inheritance?
Do I need to pay tax when selling
an inheritance?
From what moment is the period of ownership
of the inheritance calculated?

We are often asked: is it necessary to pay tax when
receiving an inheritance?
What if you sell inherited property? In what case can you avoid paying tax?
Today we will answer the most popular questions related to inheritance.

Do I need to pay tax when receiving
an inheritance?

The answer to this question is given by the Tax Code of the Russian Federation.
According to paragraph 18 of Art.
217 of the Tax Code of the Russian Federation, inheritance tax is not paid regardless of what you inherited - property or money.

exception
is the inheritance of copyright, when the successor
receives remuneration for the work of the testator.
This may be a reward for work in the field of science, literature, art, as well
as for patents for inventions.

In this case, the heir must
pay inheritance tax at a rate of 13%.

The status of the testator does not matter, so no matter who
left you the inheritance - a relative, a friend or a complete
stranger - the rules are the same for everyone.

Example:

Example:

The aunt left her niece an apartment as an inheritance.
The fact that the aunt and niece are not close relatives does not
matter - according to paragraph 18 of Art.
217 of the Tax Code, income in kind received by inheritance is not subject
to taxation.
This means that the niece does not need to declare the income received and pay inheritance tax.

Example:

In 2023, Sergei inherited 500 thousand rubles
as a reward for his grandfather’s invention.
This is the same exception when the heir is obliged to pay tax, in accordance with paragraph 18 of Art. 217 Tax Code of the Russian Federation.

By
April 30, 2020, Sergey must fill out the 3-NDFL declaration and,
together with other documents, submit it to the tax office.

Until July 15,
2020, Sergey must pay a tax of 500,000 x 13% =
65,000 rubles.

Register in the online service NDFLka.ru!
A tax expert will advise you on all issues and draw up a
3-NDFL

Do I need to pay tax when selling
an inheritance?

Yes need.
But only if you have owned the inheritance for less than three years.
Base: pp. 1 clause 3 art. 217.1 Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated June 19, 2018 N 03-04-05/41648.
This rule applies to any property, be it an apartment, car,
garage or cottage.

Example:

In 2017, Igor inherited an apartment from his grandmother.
In 2023 he sells it.
By April 30, 2020, Igor is required to fill out the 3-NDFL declaration and submit it to the tax office, and by
July 15, 2020, pay 13% income tax.
Reason: Igor owned the apartment for less than 3 years.

Example:

Each situation is individual: describe your case to your personal
tax expert.
A specialist will not only help you collect the correct package of documents, but will also fill out the
3-NDFL

From what moment is the period
of ownership of the inheritance calculated?

The period of ownership of property received as an inheritance begins from
the date of death of the testator.
Reason: Art. 1114, paragraph 4 of Art. 1152 of the Civil Code of the Russian Federation, letter of the Ministry of Finance of the Russian Federation dated February 20, 2015 No. 03-04-05/f8357.

Example:

Vadim inherited the apartment from his grandfather, who died in
January 2016.
In March 2017, Vadim formalized ownership rights.
In April 2023 he sells the apartment. Vadim does not need to pay sales tax, since the period of ownership of the apartment began in
January 2016 (from the date of death of the testator) and exceeded 3
years.

There are exceptions:

If the apartment was purchased during marriage and was inherited
from a deceased spouse .
In this case, the period of ownership is counted not from the date of death of the testator, but from the moment of
initial registration of the property.
Reason: letters of the Ministry of Finance of the Russian Federation dated May 30, 2016 No. 03-04-05/30938, April 02, 2013 N
03-04-05/9-326.

Example:

In 2015, the couple bought an apartment and registered it in
the husband’s name.
After the death of her husband in 2017, the wife took over the inheritance. In 2023, she sold the apartment.

Do I need to pay tax on
the sale of property?
No, since the period of ownership of the property began in 2015 and exceeded 3 years.

Despite the fact that the apartment was
registered in the name of the husband, it was purchased during marriage and is considered community
property. Reason: Art. 34 of the Family Code of the Russian Federation.

If the share of the apartment is inherited by one shareholder
after the death of another.

In this case, the period of ownership
is counted not from the date of death of the testator, but from the moment when
ownership of the share was initially registered.

The logic is obvious - in fact, there is an increase in the share in the
property to which there is already a right.
Reason: letter of the Ministry of Finance of the Russian Federation dated October 24, 2013 No. 03-04-05/45015.

Example:

In 2023,
he sells the apartment and does not have to pay sales tax, since
he has owned the property for more than 3 years - since 2015.

Ownership
of real estate began from the moment of registration of shared ownership,
and not from the moment of receiving an inheritance.

Register in the online service NDFLka.ru!
We will not only quickly and competently fill out the 3-NDFL declaration for you, but also send
it to the tax office