valuation
August 6, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
my sister and I have inherited two houses, two building plots, and agricultural land each half from our father. We are still in the community of heirs. One of the plots my father sold shortly before his death (Dec. 2011). However, the ownership has not yet transferred to the buyer because payment is still outstanding.
How does the tax office proceed in this case? Will the market value at the time of death be used for valuation, or does the tax office already know the selling price and base the valuation on that? Was the plot still owned by my father at the time of his death, so not yet sold? The community of heirs is now registered in the land register. Are there arguments against the tax office regarding inheritance tax?
Thank you in advance for a quick response.
Dear inquirer,
Thank you for your inquiry, which I am happy to answer, taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
For not fully completed real estate purchase contracts, the attribution of the property to the estate depends on the transfer of ownership according to the civil law concept of ownership.
Civil law-wise, ownership of the property only transfers to the buyer upon entry in the land register. Therefore, due to the lack of transfer of ownership to the buyer on the taxation date, the property is still attributed to the community of heirs at its tax value. The tax value is to be determined according to the provisions of the Valuation Act.
The estate also includes the claim to the selling price as well as the obligation to provide the property at fair value (equivalent to the selling price) as an estate liability.
I hope I could assist you.
If there are still uncertainties, please feel free to use the follow-up function.
Sincerely,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
