Due to the tax reform in 25, the number of people subject to inheritance tax and gift tax has increased.Specifically, the basic deduction for inheritance tax has been reduced by 4%, so the amount that is not subject to taxation has been reduced from 5000 million yen before the revision to 3000 million yen, and the deduction proportional to the assumed heir has decreased from 1000 million yen to 600 million yen. due to being reduced toTherefore, the decedent who owns real estate in an urban area with a high land valuation will exceed the basic exemption.After the revision, there are cases where the taxable person exceeds the basic exemption amount, and when inheritance occurs, the inheritance tax is large, and there are cases where the house that lived in was sold to prepare the tax payment fund.The more wealthy you are, the bigger the tax increase will be, so it is necessary to take some measures before inheritance.
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Why real estate is effective for inheritance measures
Many wealthy people own real estate.Assets have been handed down from parents to children and from children to grandchildren, but if the heirs do not have the knowledge, they may be taxed so much that they cannot pay off the real estate, and it may become "negative personal property".Inheritance tax occurs when you inherit your parent's assets, but the calculation of the tax amount changes depending on the type of assets.
100% of the amount of cash, deposits and stocks (market capitalization) is taxable.However, in the case of real estate, the assessed value of the building and land is subject to taxation, so 50% to 60% of the building and 80% of the public price of the land are taxable.Moreover, if it is a rental apartment or condominium, the appraisal value will drop further by 20 to 30% from now on.
You can see that it is very effective as an inheritance measure because the tax amount will also go down as the appraisal value goes down.
Inheritance tax rate hike from 50% to 55%
The taxable amount is the total inherited property minus the basic exemption amount.
The basic deduction amount is calculated as follows.
Calculation of basic deduction
[Before revision] 5,000 million yen + 1,000 million yen x number of legal heirs
↓
[After revision] 3,000 million yen + 600 million yen x number of legal heirs
In this case, if there were three legal heirs (spouse (legal husband or wife), children (lineal descendants), parents (lineal ascendants), brothers and sisters (collateral relatives)), 3 million yen was deducted. will be 8000 million yen, and the tax amount will increase by 4800 million yen compared to before the revision.
I mentioned that the taxable amount is the total inherited property minus the basic exemption amount, but there are also deductions for the taxable amount, so in order to accurately calculate the inheritance tax, the taxable amount x tax rate -The deduction amount.
Raise the top tax rate
Before revision
Acquisition amount of legal heir Tax rate Deduction amount
Under 1000 million yen 10% 0 yen
3000 million yen or less 15% 50 yen
5000 million yen or less 20% 200 yen
1 million yen or less 30% 700 million yen
3 million yen or less 40% 1700 million yen
3 million yen or more 50% 4700 million yen
After revision
Acquisition amount of legal heir Tax rate Deduction amount
Under 1000 million yen 10% 0 yen
3000 million yen or less 15% 50 yen
5000 million yen or less 20% 200 yen
1 million yen or less 30% 700 million yen
2 million yen or less 40% 1700 million yen
3 million yen or less 45% 2700 million yen
6 million yen or less 50% 4200 million yen
6 million yen or more 55% 7200 million yen
Up to this point, following the above example, the amount of income tax paid, which was 0 yen before, will be 440 million yen.
Taxable amount (3200 million yen) x tax rate (20%) - deduction amount (200 million yen) = income tax amount (440 million yen)
Of course, the higher the amount, the higher the payment.If the taxable amount is 3 million yen, it is a calculation that you have to pay 1 million yen.
Two measures to reduce taxable amount
Exceptions for small-scale residential land, etc.
Now, considering that the impact of the tax rate hike would be too great in urban areas where land valuations are high, the limit area for residential land and other residential land was expanded to enable the complete use of both residential and commercial land.This is a special case for calculating the taxable value of inheritance tax for small-scale residential land.
If the land to be inherited is the land of your home (maximum area 240㎡)
1. The heir is a spouse, a separated relative who does not own a home, or a relative living together or living together
Inheritance tax assessment value of land: 80% decrease before revision → 80% decrease after revision
2. The heir is other than that (if the joint heir has a spouse, a separated relative without a home, or a relative living together or sharing the same livelihood)
Inheritance tax assessment value of land: 80% decrease before revision → 0 after revision
3. The person who inherits is other than that ※The maximum area is 200㎡
Inheritance tax assessment value of land: 80% decrease before revision → 0 after revision
If the land to be inherited is the land of a company or factory (maximum area 400㎡)
1.Inheritor is a relative
Inheritance tax assessment value of land: 80% decrease before revision → 80% decrease after revision
2.Inheritors other than relatives (if joint heirs have relatives)
Inheritance tax assessment value of land: 80% decrease before revision → 0 after revision
3. The inheritor is other than that (maximum area 200㎡)
Inheritance tax assessment value of land: 50% decrease before revision → 0 after revision
If the inherited land is an apartment or parking lot (maximum area 200 mXNUMX)
1. The heir is a spouse, a separated relative who does not own a home, or a relative living together or living together
Inheritance tax assessment value of land: 50% reduction before revision → 50% after revision
2. The heir is someone else
Inheritance tax assessment value of land: 50% decrease before revision → 0 after revision
Settlement taxable gifts at the time of inheritance
Under this system, grandparents and fathers/mothers can make lifetime gifts to their children and grandchildren, where the annual upper limit for lifetime gifts is usually 110 million yen, but 2500 million yen worth of gift tax will be exempted.The age of the giver has been lowered from 65 to 60, and grandchildren aged 20 and over have been added to the beneficiaries.In addition, it is now possible to donate from not only parents but also grandfathers and grandmothers.In addition, the amount exceeding 2500 million yen will be taxed at 20%.
However, it is important to note that this will not result in a reduction in inheritance tax.When the person who gave the gift dies, the gifted amount is added to the inheritance amount, so it is subject to inheritance tax.
Therefore, by changing it to profitable real estate and donating it, it becomes possible to secure tax payment funds from the rent, realizing a method of effectively reducing the inheritance tax to 0 yen.
Summary
To reduce the taxable amount by lowering the assessed value for tax purposes...
- Reduce inheritance tax by taking advantage of special provisions for small-scale residential land, etc.
- Reduce gift tax by using gift tax settlement at the time of inheritance
- Securing tax payment funds from rent by converting to profitable real estate
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
