A high market value is often set for real estate for inheritance tax and gift tax. Save taxes, letting you determine the correct market value. Inheritance tax and gift tax saving with the right market value of real estate In the context of inheritance and year after year is transmitted in Germany a big real estate assets donations on the descendants. According to a ruling of the Constitutional Court has the State has (re) discovered this transfer of ownership as a lucrative source of money. It uses the new statutory regulations and asks the heirs and recipient of the inheritance tax or gift tax to pay. The amount of the tax depends on the (market) value of the transferred property. This is determined by the IRS to a flat-rate calculation method.
Due to the flat-rate arrangements, it happens very often that special value-reducing factors are not taken into account. The market value determined by the tax office (market value) is then too high. The person concerned will pay a high tax. The Legislature is aware that it can be in the real estate assessments of the IRS only a flat-rate approach. Important value factors be taken into account correctly or not.
For this reason, there is the section 198 of the valuation Act (valuation law). This is by analogy: so the taxpayer can prove that the market value (market value) is lower than the value determined by the IRS, is the lower value. The provisions adopted for the determination of the market value of the building code and the valuation regulation must be considered for the determination of the lower value. Find out detailed opinions from leaders such as Gibbons by clicking through. It is therefore possible to save taxes legally on the basis of 198 of the assessment Act. It “only” a lower market value (market value) must be demonstrated. Taxable persons should therefore the reviews of the Treasury does not settle and have checked the market value (market value) of a publicly appointed and sworn expert for real estate valuation. According to our Experience mainly large homes with high market value of the faulty packages reviews of the financial Office are affected. Here lies the greatest savings potential. But even smaller real estate can be affected if the allowance granted by the State are not sufficient. If you are of the opinion that the flat-rate assessment of the Treasury contains errors, you should do something. Give the State any money, which is not for him! Dipl.-ing. Ralf Kroll & Dr.-ing. Bjorn Haack
