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Tax expert reveals: Inheriting and giving - more expensive due to property value increasing by several percent in 2023!
According to a report from www.capital.de, associations and tax advisors warned a year ago that inheriting and giving will become more expensive in 2023. But a year later it turns out that they were only partially right. A balance sheet In December 2022, many property owners were in a hurry to transfer their properties quickly before the turn of the year. The reason: The fear that inheriting and giving gifts could become more expensive from January due to a change in the annual tax law. The rush for notaries and tax experts had increased significantly. Frankfurt notary Marc Ströbele reported that he was processing twice as many cases as usual. In one morning alone he had three new...
Tax expert reveals: Inheriting and giving - more expensive due to property value increasing by several percent in 2023!
According to a report from www.capital.de,
Associations and tax consultants warned a year ago that inheriting and giving will become more expensive in 2023. But a year later it turns out that they were only partially right. A balance sheet
In December 2022, many property owners were in a hurry to transfer their properties quickly before the turn of the year. The reason: The fear that inheriting and giving gifts could become more expensive from January due to a change in the annual tax law. The rush for notaries and tax experts had increased significantly.
Frankfurt notary Marc Ströbele reported that he was processing twice as many cases as usual. In one morning alone he accepted three new donation requests. Deniz Hoffmann, a tax law specialist at the Rose & Partner law firm in Frankfurt am Main, had even expected an increase in value of around ten percent for multi-family homes - and he was right.
The change in the annual tax law led to the value of apartment buildings in inner city locations increasing by several percent. This means that more inheritance tax now has to be paid when real estate in inner-city locations is donated or inherited.
However, expert Stefan Bach from the German Institute for Economic Research (DIW) does not see any major disruptions as a result of the change. The discussion was “quite a ghost debate” from the start, he said. The concerns about higher taxes on single-family homes are unfounded, as the change in the annual tax law only affects a few individual cases of wealthy people.
Nevertheless, the Haus und Grund owners' association is calling for an increase in the allowances for inheritances and gifts, as these are increasingly not sufficient in the usual transfer channels to children or spouses. This means that more applications for deferrals are submitted to the tax office and approved, which only postpones the problem into the future.
It remains to be seen whether there will be an increase in the allowances in the future and how property prices will develop. The changes to the annual tax law are already having an impact on the market for real estate transfers.
Read the source article at www.capital.de