Inheritance tax. What taxes are paid upon entering into an inheritance under a will and under the law

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today we will be interested in inheritance tax. Is there such a payment? How much is it in Russia in 2018? Are there benefits for the population in this area? And in general, what expenses will citizens have to face when receiving property by way of inheritance? Next, we will try to understand all of these issues. It's actually not as difficult as it seems.

Methods of Inheritance

Inheritance is subject to personal income tax? Or are citizens exempt from taxation?

First, let's find out how you can inherit property. The amount of money given in the process of implementing the task will depend to some extent on this.

In Russia, the transfer of property from the testator can be carried out:

• by law;
• according to testamentary document.

Will there be a tax on the share of the inheritance in this or that case? And from its whole part? It is not difficult to understand such an issue. Especially if you carefully study the current Tax Code of the Russian Federation.

Taxes - to be or not to be

Inheritance income tax will bepay? Is there any other tax payment in relation to a similar transaction?

Under current laws, there is no tax on income from property received by inheritance. This rule is spelled out in article 217 of the Tax Code of the Russian Federation.

The degree of relationship in this situation does not play any role. All heirs are exempt from taxation when acquiring property. But there are exceptions.

What is taxable

What is it about? There will be no real estate inheritance tax in Russia. What about other property?

Individual income tax in the amount of 13% is required from citizens who receive by inheritance in any way a monetary reward for the fruits of creativity, science, intellectual activity, and so on. This is an extremely rare scenario.

About mandatory payments

However, it is worth paying attention to the fact that obtaining property from the testator involves a number of costs. Every modern person should know about them.

Inheritance tax is a term often used for inheritance fees. It is in this vein that this kind of phrase will be used.

Duty is mandatory. But their size will depend on the method of obtaining property from the deceased citizen. Moreover, when determining the mandatory expenses for entering into an inheritance, the degree of kinship is taken into account. So what hands can be faced in this or that case?

By will

If, say, a womanreceived an inheritance, do I need to pay tax under such circumstances?

Let's consider the situation with testamentary inheritance. This technique is used in Russia more and more often. It allows you to distribute property among the heirs during the life of the former owner. Moreover, it is allowed to bequeath property to third parties.

What inheritance tax is paid in the form of state duty when reading a will? Here are the most common expenses:

• disclosure of the document - 300 rubles;
• confirmation of the validity of signatures - 100 rubles;
• acceptance of hidden testament paper - 100 rubles;
• Provision by a notary of the safety of a person's property - 600 rubles.

Some private offices may charge higher fees. But they, as a rule, do not differ much from the proposed price list. Generally, there is a fee for notary services as a whole, not stamp duty.

Property duties

When entering into an inheritance, what taxes do notaries and tax services have to transfer?

Regardless of the method of obtaining property by inheritance, citizens must transfer the state fee in the prescribed amount.

How much to pay in this or that case? The answer depends on the value of the property, as well as the degree of relationship between the recipient of the property and the testator.

Currently, the following rates apply in Russia:

• 0, 3% - for loved ones;
• 0, 6% - for the restpersons.

You will have to focus on these indicators. What else is important to remember for all potential recipients of benefits from testators?

Maximum payment for loved ones

Inheritance tax in Russia has some limits on the amount. There is no minimum payment, but there is a maximum. More than a certain amount of money from the heir is not charged.

In 2018, the state fee for the process of obtaining an inheritance cannot exceed 100,000 rubles. This is the amount of payment charged from one recipient for all property transferred to him from this or that person.

Accordingly, if a citizen receives material benefits from several testators, he will have to pay a maximum of 200 thousand or more. It all depends on how often a person acts as an heir to one degree or another.

Important: the bonus applies only to recipients of the 1st and 2nd order of succession.

Maximum for other persons

Inheritance tax by will or by law is levied at prescribed rates. But, are there any restrictions in terms of duties for third parties? Or do they ultimately give as much as the relatives of the testator?

Not at all. The current laws of the Russian Federation establish a limit of duties for the acquisition of property by way of inheritance in the amount of 1,000,000 rubles. This restriction applies to citizens who are not close people to the deceased. In this case, the method of acquiring property by the heirs does not play any role. By remembering all these rules, everyone will be able to understand how muchwill make an inheritance tax for him.

Defining "relatives"

The tax on the inheritance of close relatives-heirs is of interest to the bulk of citizens. Especially if people receive property from the deceased by law. Under such circumstances, family ties play an important role. Depending on them, the property of the deceased citizen will be distributed.

Inheritance tax on an apartment or other property in the amount of 0.3% of its value under current laws is levied on:

• parents;
• husband or wife;
• children;
• brothers;
• sisters.

No one else is in the circle of close relatives by law. Accordingly, the remaining heirs pay 0.6% of the value of the object.

Shares and payments

But what if a person receives only part of the property? For example, how will tax be calculated when inheriting an apartment between several heirs?

Share in property allows you to reduce the amount of duty. After all, the "tax" is calculated in proportion to the parts of the inheritance assigned to each recipient. However, it is important to keep in mind the maximum limit of the respective transactions.

About beneficiaries

How the tax on the share of the inheritance is calculated, we found out. Are there any benefits regarding the topic being studied?

Yes. First, it provides for a reduction in the duty rate to 0.3% of the value of the property for close relatives. But that's not all. At the moment it is possible to determinethe circle of persons exempted from the state duty in general.

Preferential categories include:

• disabled people and related associations;
• heroes of the USSR or RF;
• veterans;
• combatants;
• government officials.

All these citizens are fully exempt by law from any fees for receiving property by inheritance. And that's not all state bonuses. There are other benefits.

Discounts and other bonuses

Inheritance tax - by will or by law - is paid in the previously proposed amounts. But, as already mentioned, there are a number of exceptions.

Consider the process of issuing a certificate of inheritance. Notarial services for disabled people of the 1st group are paid at a 50% discount.

In addition, here is a list of citizens who are not charged for obtaining a certificate from a notary of the established form:

• heirs of those who died in the line of duty (protection of state property, citizens);
• recipients of property from repressed citizens;
• people who inherit bank deposits, salaries, insurance benefits;
• children;
• incapacitated, having a custodian or guardian.

In addition, people who at the time of the death of the testator lived with him at the time of the death of the testator are exempt from notary fees. No more bonuses and benefits under the laws of the Russian Federation are provided.

Important: the right to tax exemption oninheritance to one degree or another will have to be documented. Lack of relevant papers will be grounds for denial of benefits. Therefore, it is recommended to prepare in advance for receiving an inheritance.

Property for sale

We found out what inheritance tax will be charged to citizens under certain circumstances. Sometimes it happens that a person quickly receives property and puts it up for sale.

What happens under these circumstances? The state duty for receiving property from the testator has already been paid. And now, when selling property, you will have to pay income tax.

It is:

• 13% - for Russian citizens;
• 30% - for foreigners.

There are no benefits in this regard. There is only one scenario in which you do not have to allocate funds for an inheritance purchase and sale transaction. But more on that later.

The payment amount is determined by the amount specified in the purchase agreement. It is from this indicator that taxpayers will have to start.

Free from taxes on sales

As already mentioned, a person under certain circumstances may be exempt from tax on an inheritance that was sold by an heir. It is not difficult to use the benefit - just make a deal and submit an income declaration to the Federal Tax Service.

In Russia, exemption from personal income tax on the sale of property relies:

• after 3 years of ownership - if the car is being sold;
• after 5 years of ownership- in relation to real estate.

One more benefit is in effect today. It applies to property obtained by any means before 2016. If such a property is sold, then it is exempt from taxation after 36 months of ownership by the seller.

Property taxes

No real estate inheritance tax as such. But mostly citizens have to deal with state fees in one size or another.

What payments will the heir have to make after the registration of objects and benefits from the testator into the property? A year later from the date of re-registration of property rights, a person will need to pay:

• property tax - for real estate;
• transport tax - for car ownership.

By law, some citizens may be exempt from the listed taxes. This is usually:

• disabled;
• pensioners;
• veterans.

The listed categories of citizens are offered full exemption from property tax payments in respect of only one object of a particular category. Accordingly, if the right to a benefit is already used, it will not be possible to renew it. This is a completely legal norm that is valid throughout the territory of the Russian Federation.

Methods of paying the fee

Probate/Legal Inheritance Tax is required to be paid on time. And all the fees for the corresponding operation too. Otherwise, a person will be denied an inheritance.

How to carry out transactions on the territory of the Russian Federation? Heresome fairly common scenarios:

• appeal to cash desks of Russian banks;
• transaction through Internet banking;
• deposit funds through ATMs/payment terminals;
• payment through online wallets;
• using cash registers at notaries or the Federal Tax Service (depending on the type of payment).

As practice shows, the process of transferring funds does not cause any difficulties. But the citizen needs to prepare.

What is required for payment

How exactly? Required:

1. Select how to pay duty or tax.
2. Find out the details of the recipient organization. For example, a notary's office or a local tax office.
3. Bring your passport, receipt (preferably), mobile phone, money (cash or bank card).
4. Make a payment using prepared papers.

That's it. In real life, direct payment of duties / taxes and preparation for it does not cause any special problems. And often you can cope with the tasks in a few minutes.

Important: if the sale of property is carried out, then a number of papers will have to be sent to the Federal Tax Service to pay the tax. For example, a contract of sale and certificates of inheritance. In addition, you must prepare a tax return in the prescribed form.

Conclusion

Today we found out what payments the heirs will face. Moreover, we were able to study all possible duties and taxes that arise for recipients of property fromtestators.

There is no direct inheritance tax in Russia. Previously, it was mandatory for individuals to face taxation under a will. But since 2005, the corresponding payment was abolished. This technique has significantly reduced the burden on the heirs.