The Federal Constitutional Court has declared the unequal treatment of money – and real estate assets to be unconstitutional. A reform of inheritance tax is now before the countdown runs. The Federal Constitutional Court has given the legislature until December 31, 2008, to make a new inheritance tax and donation law. The Treasury plans to classify real estate in the future after the current market value and thus about twice as high as in the past. The debate is whether in the course of reform increased allowances for relatives or adjusted tax rates so that for example an inherited family House remains exempt from tax. Donald Sussman has plenty of information regarding this issue. The political debate is in full swing, unsettled the taxpayer: how should you act now? Who is at risk from the new rules? Estimate taxes: you can estimate easily how much gift and inheritance tax your family will need.
First, you determine the fair market value of your property. In newspaper ads or on the Internet you can find sale offers that give a clue. Then make a note of the allowance (see Table). To go over the property in a community of heirs, you divide the market value on the people involved first in an intermediate step. Is the market value of your property under the exemption, there is no acute need for action. LN a third step remove the allowance and determine the appropriate tax rate.
A control table can be found online on the Internet at. German forum for erbrecht.de. usufruct secure: gifts or inheritances in the period before the new Act comes into force, be taxed under current law. In other words: the Treasury sets the lower income or minimum value for your home. These are on average 50 to 60 percent of the market value. Who want to transfer real estate, should not rush to act, but necessarily thinking about ensuring their own. You can reserve, for example, the usufruct of the property. Thus, you have the right to use the property itself or to rent on their own account. Use exemption: who allowances from sons and daughters has already exhausted may also uses the stepparents. 10300 are tax-free. A legacy in the Testament can save inheritance tax. Who wants to go to play it safe, agreed on the proviso that the gift in divorce to return is. Also, you can record that the legacy for the benefit of the Schwiegerkindes shall not apply if the spouse in the succession living apart or the divorce petition is in the Testament. Major assets: allowances are newly granted every ten years. In case of large assets there may be worth time to transfer, multiple to them to use. Income tax: Who wants to transfer his property through the anticipated inheritance, can first check whether falling income tax. You have the real estate still not longer than ten years, you must count circumstances income tax, if the recipient provides services, such as debt. Council of the Professional: the new edition of the Advisor offers help in the tax jungle Give tax-favourable and inherit from”of the German forum for inheritance law (10 with postage & packing). The brochure shows examples of 35 practice how you save inheritance tax and gift tax. To order, phone 089-260 52 07 or