You inherit a property and decide to live in it yourself.
This can have tax advantages, which you should know.
In life there are many decisions you have to make.
Some of them are easy for you, others require more strength and nerves.
For example, it is important that you think about your estate; for this you can draw up a handwritten will.
If you have a lot to pass on, you can also think about whether you would like to give something away during your lifetime.
If you are on the 'other' side and inherit a property, for example, you can save taxes if you move in yourself.
Inherited property: no inheritance tax?
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If you inherit a property, you can save taxes if you use it yourself.
© Madhourse/Panthermedia/Imago
Have you inherited a property and would like to live in it yourself?
If you have your main residence there, you can save inheritance tax, informs
Stiftung Warentest
.
However, there is a restriction: the privilege only applies to spouses, registered life partners or children of the deceased person.
What applies to grandchildren of the deceased?
Grandchildren only benefit if the parent who was actually entitled to inherit has also died.
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Pay attention to tax allowances: degree of relationship is crucial
Depending on the degree of relationship, there are tax allowances for inheritance in Germany.
If you inherit real estate, the value of the property is assumed.
The amount of the total inheritance is decisive for the exemption amount.
Here is an overview for spouses and children.
degree of relationship |
Allowance |
|---|---|
spouse |
500,000 euros |
Children |
400,000 euros |
Grandchildren if their parents are already dead |
400,000 euros |
What do I have to consider as the testator's child?
In general, you as an heir should live in the property for at least ten years if you want to benefit from tax.
Children of the testator should note the following: “In addition, only properties with a maximum of 200 square meters are tax-exempt for children.
The additional square footage must be taxed proportionately,” says Ralf Mangold, specialist lawyer for inheritance law, to
Stiftung Warentest
.
Furthermore, children would generally have to move in within six months of the inheritance.
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What happens if I can't live in the property for ten years?
If you have to leave the inherited property before the deadline for compelling reasons, the deadline does not apply.
The reason for this could be health reasons or death, for example, reports
Finanztip.de
.
What are the costs for personal use?
Heirs have two years to design the property in accordance with the Building Energy Act.
For example, oil and gas boilers that are more than 30 years old need to be replaced.
This obligation does not apply to condensing or low-temperature boilers.
The insulation must also meet the specifications.
Once you have taken over the apartment, you will also pay the property tax as usual.
You should also take care of insurance.
Category list image: © Madhourse/Panthermedia/Imago