This way you can reduce inheritance tax on real estate and secure the family's assets

This way you can reduce inheritance tax on real estate and secure the family's assets

According to a report from www.zeit.de, the annual tax law has changed the valuation basis for the taxation of inherited properties. As a result, the estimated values ​​for houses and apartments on which the tax is calculated have increased. Although there are certain allowances, these have not been increased for around 15 years, while properties have increased in value for years. The concern in many families is a greatly increased tax burden for heirs, which in the worst case scenario could lead to an emergency sale of real estate.

The changes in real estate valuation largely affect the income and material value methods used for rental residential and commercial properties. However, for residential buildings that are purely inherited, there is no need to fear a ruinous claim from the tax office. The allowances for spouses are 500,000 euros and for children and stepchildren 400,000 euros - per parent. In addition, real estate can be given away during your lifetime and the ten-year gift tax period can be used to repeatedly exhaust the exemption amounts. This allows the tax burden to be significantly reduced.

It is crucial to use the window of opportunity to reduce the tax burden. It is also possible to avoid inheritance taxes due through family structures or a chain gift, in which a property is passed on within the family over several stages.

Overall, concerns about an emergency sale of real estate due to sharp increases in inheritance taxes are more the exception than the rule, especially for owner-occupied residential properties. The tax burden can be reduced through various options and the property can be kept in the family for future generations.