Inheritance tax for close relatives in 2022: when and how much to pay

Inheritance is the process of obtaining ownership of property, cash, securities and other assets left over from a deceased owner.

The heirs may be his relatives, friends, other relatives, as well as strangers. Their list and shares in the inheritance are indicated in the will during the life of the testator, and if such a document has not been drawn up, then they are established in the manner determined by the current legislation, primarily the Civil Code.

Due to the fact that accepting an inheritance is actually receiving income, a question arises regarding taxation. In particular, many heirs do not know whether they need to pay:

• income tax on assets received (money, property, securities, etc.);
• real estate tax (for example, if an apartment, garage or house is inherited);
• other taxes (for example, when selling inherited property).

Additional expenses for inheritance

It is worth noting that the term “inheritance tax” is often confused with the additional costs that heirs have to bear in the process of solving related formalities. Such expenses are:

• state fee for notary registration;
• fees for services of other government agencies (property valuation agencies, Bureau of Technical Inventory, etc. - depending on the situation);
• payment of forced expenses for the maintenance and servicing of inherited property (for example, repayment of debt to housing and communal services left by the deceased testator).

Such expenses are not related to taxation and are not tracked by the tax authorities.

When do you need to pay inheritance tax for close relatives in 2022?

However, there are exceptions in which individuals receiving income from certain past activities of the testator must pay this fee.

In 2022, inheritance tax for close relatives will have to be paid if the testator’s estate includes:

1. patented scientific activities;
2. trade in art objects;
3. author's literary works;
4. industrial inventions.

Important! When opening an inheritance for property, the heirs will have to pay a tax rate of 13%.

Also, an inheritance with an estimated value of over 850 thousand rubles received before 2006 is subject to a payment exception. Thus, it will be necessary to first pay the tax on property registered by inheritance, and only then enter into inheritance rights.

What circumstances affect the payment of inheritance tax?

Which method, by will or without a will, the inheritance was received does not play a role when determining the amount of tax on the inheritance of close relatives.

Here, such circumstances are taken into account as: the degree of relationship of the heir to the testator, the estimated value of the inheritance, whether the heir lived with the testator in the same house or apartment, whether the heir has appropriate benefits, his physical capacity.

Is inheritance taxable?

Until July 1, 2005, there was a law in Russia obliging citizens to pay inheritance tax depending on the closeness of the family connection with the testator. However, it was canceled and is no longer in effect.

Thus, at present, Russian citizens are not required to pay tax on inherited property, real estate, securities, cash or other assets.

The exception is situations where copyright is inherited, giving the heirs the right to receive compensation for the work of a deceased person. For example, a deceased father left behind an invention that brought income to his son. In this case, the son will have to pay income tax on the entire amount.

There is also a nuance regarding property taxes. If an inherited property (apartment, garage, house, etc.) is subject to this tax, then it will have to be paid. But in this case it is not directly related to the inheritance procedure. All citizens of the country who own such property must pay real estate tax, and the procedure for its calculation and payment is determined by current legislation. In the same way, it is paid after purchasing real estate or receiving it as a gift.

Inheritance tax under a will

During his lifetime, the testator can draw up a will that provides for the transfer of his assets to private individuals (not necessarily to relatives, these can also be strangers), legal entities or the state. Depending on the circumstances, the will is certified:

• private or public notary;
• local authority;
• consulate of the Russian Federation (if the document is issued outside the country).

Regardless of in whose favor the will is drawn up and who certified it, inherited assets are not subject to taxation (except in situations where copyright is involved).

You only need to pay a state fee for registration of the inheritance procedure. The details for making the payment will be provided by the notary who is involved in the management of the inheritance case.

Intestate inheritance tax

Entering into an inheritance is possible even in the absence of a will. In this case, the process is regulated by relevant legislative acts and is formalized by a notary. This applies to the following situations:

• the will was not drawn up or was irretrievably lost;
• the document indicates the heirs who are deprived of inheritance;
• the will is declared invalid or drawn up incorrectly;
• absence of heirs or refusal of inheritance;
• other private cases.

In the absence of a will, the main reason for transferring inherited property is the presence of family ties between the deceased and the persons claiming the inheritance. The order in which the will is divided, as well as the inheritance procedure itself, is regulated by relevant legislative acts (primarily the Civil Code of Russia).

Regardless of the order in which the inheritance process took place (through a notary, court, etc.), inherited assets are not subject to taxation (except for situations when it comes to copyright).

You will only need to pay the state fee for performing notarial acts, including issuing the appropriate certificate. Its size is determined by the Tax Code and depends on the value of inherited assets.

Advantages and disadvantages

The advantages of making a will are as follows:

• the owner can independently determine the future owner of the property;
• at any time during his lifetime, the testator has the right to change or cancel the document without indicating the reasons for this (Article 1130 of the Civil Code of the Russian Federation);
• no encumbrances are imposed on the property;
• the testator may not consult with other residents of the apartment about the appointment of the future owner if they are not the owners;
• the citizen will live in the premises for the rest of his life, without any restrictions, since the rights to property will be transferred to other persons only after his death;
• The document can specify the conditions for inheriting property.

The law does not limit the number of wills. Therefore, a citizen has the right to draw up several documents in relation to different real estate. The will may name not just one person, but many people. Their number is also not limited.

Making a will also has its disadvantages. Among them are:

• the possibility of canceling or challenging the document;
• the presence of citizens entitled to an obligatory share in the inheritance;
• heirs do not always know whether they are mentioned in the document;
• ownership of the property passes to the recipient only after the death of the owner.

A will is much easier to challenge than other methods of registering real estate as a property. Therefore, citizens who decide to transfer property to an outsider who is not related to him by family ties can consider the option of registering a deed of gift.

Tax on sale of inheritance

This depends on the circumstances of the sale of the property. The order is as follows:

• if ownership of the property lasted 3 years or more, no tax is paid (this is specified in the Tax Code of the Russian Federation, see 217, clause 17.1);
• when selling a property, the tax base can be reduced by 1 million rubles (for example, if the price is 2.5 million rubles, then you will only need to pay tax on 1.5 million rubles);
• when selling other types of property, a tax deduction in the amount of 250 thousand rubles may be provided;
• when selling property received from a close relative, the tax base is allowed to be reduced by the amount of expenses (for example, if an apartment was sold for 2 million rubles, and was previously purchased for 2.3 million rubles, you will not have to pay tax).

To confirm the right to receive a tax deduction and reduce the tax base, you must submit the relevant documents. You can check their list with your tax authority at your place of residence.

Estimation of the value of inherited items for payment to the state

The most common types of inherited property, such as an apartment, dacha, house, car, are often transferred without a will and are not subject to tax.

However, since the fee is a percentage of the assessed value of the estate, an appraisal of the property must be carried out. The heir has the right to independently choose a specialist who will carry out the procedure.

By receiving a documentary conclusion from the examination of the market value and cadastral value of the property, it is possible to determine the amount of the state duty. Despite the fact that registering an inheritance is often a long process, many documents can be completed independently, which will help save significant money.

The procedure and nuances for determining the estimated value of the testator's property

State duty is paid on real estate. Its amount depends on whether the heir lived with the owner or not. If there is a fact that the heir lived with the testator for more than six months, he is exempt from payment.

If such a fact has not been established, taxes upon inheritance of real estate by close relatives are calculated from:

1. inventory assessment;
2. market value estimates;
3. cadastral value assessments.

If an inheritance is registered for a land plot, the tax is based on the estimated value of the plot.

Valuation of real estate and movable property for payment of mandatory payments

After concluding a written agreement with the Roregister or a specialized bureau, a package of documents may be required to conduct the assessment.

Among them:

• death certificate of the owner;
• heir's passport;
• documents confirming the ownership of the deceased;
• cadastral plan.

To calculate the estimated value of a land plot, experts take into account its size. Also, the price depends on whether there are communications and what the location is relative to highways.

On average in Russia, the cost of such an assessment varies within 3 thousand rubles.

Important! Based on the results of the assessment examination, the customer is issued an assessment report. It is drawn up in writing, indicating the date, without ambiguous interpretations, which contains complete information about the appraisal site, a link to the agreement with the customer and has the seal and signature of the responsible person.

FAQ

I inherited an apartment. What tax should I pay if I sell it 6 months after legalization of ownership?

Answer: The citizen will have to contribute personal income tax to the budget in the amount of 13% of the amount of income received as a result of the sale of real estate.

Do I need to pay tax if I sell a home that was inherited without a will 4 years ago?

Answer: In this case, the tax deduction will be equal to the cost of housing, that is, after the sale of this apartment there is no need to pay anything.

Refusal or commitment?

Paying attention to testamentary refusal and testamentary assignment, one cannot fail to note their conceptual similarity. Thus, in paragraph 2 of Article 1139 of the Civil Code of the Russian Federation it is directly stated that the provisions governing actions arising during the execution of a testamentary refusal are respectively applied to a testamentary assignment, the subject of which is actions of a property nature. However, it is also necessary to mention that the main and apparently the only distinguishing features between these two concepts are:

• generally beneficial purposefulness of testamentary assignment (clause 1 of Article 1139 of the Civil Code of the Russian Federation);
• In addition to the heir, the executor of a will may also be the executor of the will (clause 1 of Article 1139 of the Civil Code of the Russian Federation and clause 4 of clause 1 of Article 1135 of the Civil Code of the Russian Federation).

Since testamentary assignment, as stated above, represents a generally beneficial and not personal purpose, it seems that consideration of this concept (testamentary assignment) is not relevant for us (yet).

In this regard, let us dwell on such a category in inheritance law as testamentary refusal.

Cost structure for inheriting housing using an example

Let's consider the total cost of taking ownership of an apartment through inheritance.

Example. After the death of the father, the citizen receives an apartment. Based on the results of an independent assessment, the cost of the object was established at 25,000,000 rubles. The Russian lives in another city, so he had to travel to his small homeland several times during the paperwork process.

The general structure of expenses for entering into an inheritance is as follows.

In total, the entire process cost this citizen 106,000 rubles. The absence of a tax for registration of housing rights is compensated by a rather impressive fee.