Gift of real estate, Tax

In the case your grandmother in law gifts land and house to you. In this case you may need to pay several kind of tax.

Regarding gift tax

At first, you want to know the amount of taxable value.

You can acquire certificate of value of real estate at tax office, city hall.

Assumed that appraised value (you can know the amount in property tax bill)of land is 5 million yen and, value of house is 1.2 million yen.

However as for land, you cannot use this appraised value for calculation of gift tax. You need to calculate based on Rosenka (road side land value).

Then, you have found out taxable value based on Rosenka of land is 2 million yen.

As of 2018, tax exemption is 1.1 million yen per a year.

So, if the value of gift is 1.1 million yen or less, you do not need to pay gift tax.

So, 1.2 million  yen (house) + 2 million yen (land)= 3.2 million yen.

3.2 million yen – 1.1 million yen (tax exemption ) = 2.1 million yen.

This is taxable value for gift tax.

2.1 million yen × 15% (tax rate differs depending on taxable value)- 100,000 (tax deduction)= 215,000 yen.

This is gift tax amount.

When you ownership of real estate, you need to pay acquisition tax (shutoku zei).

In order to calculate the amount of acquisition tax, you can use appraised value of real estate.
So, 5 million yen (land) /2 + 1.2 million yen (house) = 3.7 million yen.
3.7 million yen × 3% = 111,000 yen.
This is acquisition tax.

Then, you need to pay registration tax.
When you obtain ownership right of real estate, I will file registration of ownership transfer for you.

In this case, 5 million yen (land)  + 1.2 million yen (house) = 124,000 yen.
This is registration tax.

Gift tax 215,000 yen
Acquisition tax 111,000 yen
Registration tax 124,000 yen

As for Gift tax
As mentioned above, when the amount of gift is 1.1 million yen per a year, you do not need to pay gift tax.
So, you can take this kind of process.
In 2018, you have decided to receive ownership transfer of real estate only for 1/3rd.
1.2 million  yen (house) + 2 million yen (land) =3.2 million yen.
3.2 million yen / 3 =1,066,000 yen.
This is less than 1.1 million yen. So, you do not need to pay gift tax.

In 2019, you have decided to receive ownership transfer of real estate only for 1/3rd.
1.2 million  yen (house) + 2 million yen (land) =3.2 million yen.
3.2 million yen / 3 =1,066,000 yen.
This is less than 1.1 million yen. So, you do not need to pay gift tax.

In 2020, you have decided to receive ownership transfer of real estate only for 1/3rd.
1.2 million  yen (house) + 2 million yen (land) =3.2 million yen.
3.2 million yen / 3 =1,066,000 yen.
This is less than 1.1 million yen. So, you do not need to pay gift tax.

In this way, you can own whole real estate and can avoid payment of gift tax.

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