How to calculate appraised value of land ( relating inheritance tax and gift tax )

In the case a person ( Nancy ) dies in Japan or outside Japan and if she has asset in Japan, there are cases that her heirs need to pay inheritance tax to tax agency in Japan.

( As for Inheritance tax relating to a foreign national in Japan. )

If Nancy has real estate in Japan, her heirs need to calculate appraised value of real estate.

Assumed that Nancy has a two storied house at 1-49-8, Nishi rokugo, Ota ward, Tokyo.
( Land area is 100 square meters. )
rosenka, map
At first, heirs need to know the amount of road side land value ( Rosenka ).
They can know amount of road side land value ( Rosenka ) here.
In Tokyo, almost all of road has its price. Competent government agency priced roads and this price is used for calculating the amount of inheritance tax and gift tax.

Here is map of road side land value in this area.
( The number in this map is address =Jusho. Not lot number. )
road side land value of Japan,
This house faces toward a road. And there are letters of 280D.
This means the appraised value of one square land  that faces on this road is 280,000 yen.

But, in this map, green part of lot does not face on road. So, appraised valued of this green part should be lower than lot that faces on road.
So, they can depreciate the value of this part.
rosenka okuyuki hosei
So, calculation formula is as below.
280,000 yen × 100 square meters × 1.00 = 28,000,000 yen.

Appraised value of this lot is 28,000,000 yen.

As for appraised value of building.
If heirs acquire certificate of appraised value at tax agency, they can not the price.
So, as for building, they do not have to calculate it.

If her heirs need to pay inheritance tax in Japan, they need to file tax report by 10 months later of Nancy’s death.
And Tax office that has jurisdiction over Nancy’s domicile has jurisdiction for this inheritance tax.
So, Tax office that has jurisdiction over heirs domicile does not has its jurisdiction for this inheritance.

This way of calculating value of lot is available even in the case a person purchases real estate in Japan.
In the case a person looks for detached house, she needs to know if the purchase price is reasonable or not.
In that case, she can calculate the value of lot by using road side land value.
Then, if selling price is lower than price based on road side land value, the selling price may be reasonable.
For example.
She finds a detached house its selling price is 100 yen.
And she calculates appraised value of the lot based on road side land value, then finds out it is 200 yen.
In that case, if she purchases this detached house at 100 yen, her purchase price may be reasonable.

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