The department explains the procedure for paying land tax inherited. Taxes on inheritance after death Who does not pay state duty
LETTER
ABOUT CALCULUS
LAND TAX AND PROPERTY TAX FOR INDIVIDUALS
WITH RESPECT TO REAL ESTATE OBJECTS,
PASSED BY INHERITANCE
The Federal Tax Service provides clarifications on the issue of calculating land tax and property tax for individuals in relation to a land plot, building, premises and structures passed on by inheritance.
Based on subparagraph 3 of paragraph 3 of Article 44 of the Tax Code of the Russian Federation (hereinafter referred to as the Code), the obligation to pay tax terminates with the death of the taxpayer or with his recognition as deceased in the manner established by the civil legislation of the Russian Federation.
Article 396 of the Code establishes that in relation to a land plot (its share) inherited by an individual, land tax is calculated starting from the month of opening of the inheritance.
For buildings, premises and structures, property tax for individuals is levied on the heirs from the moment the inheritance is opened (Article 5 of the Law of the Russian Federation of December 9, 1991 N 2003-1 “On taxes on property of individuals” (hereinafter referred to as Law N 2003-1)) .
ConsultantPlus: note.
From September 1, 2016, Federal Law No. 79-FZ dated March 30, 2016, amended paragraph 1 of Article 1114 of the Civil Code of the Russian Federation, according to which the time for opening an inheritance is the moment of the citizen’s death.
An accepted inheritance is recognized as belonging to the heir from the date of opening of the inheritance, regardless of the time of its actual acceptance, as well as regardless of the moment of state registration of the heir's right to the inherited property, when such a right is subject to state registration.
According to Article 388 of the Code, taxpayers of land tax are organizations and individuals who own land plots recognized as an object of taxation in accordance with Article 389 of the Code, on the right of ownership, the right of permanent (perpetual) use or the right of lifelong inheritable possession.
Taxpayers of taxes on property of individuals are recognized as individuals - owners of property recognized as an object of taxation (Article 1 of Law No. 2003-1).
Individuals pay tax on the basis of a tax notice. Sending a tax notice is allowed no more than three tax periods preceding the calendar year of its sending.
Paragraph 6 of Article 85 of the Code establishes that bodies authorized to perform notarial acts and notaries engaged in private practice are required to report the issuance of certificates of the right to inheritance to the tax authorities, respectively, at their location, place of residence no later than five days from the date of the relevant notarial certificates. The information submitted to the tax authorities in the form approved by order of the Federal Tax Service of Russia dated September 17, 2007 N MM-3-09/536@ includes information about heirs and inherited real estate objects.
Considering that an accepted inheritance is recognized as belonging to the heir from the date of opening of the inheritance, regardless of the time of its actual acceptance, and also regardless of the moment of state registration of the heir's right to the inherited property, upon receipt from the body authorized to perform notarial acts, information about the issuance of a certificate of right to the heir inheritance, the tax authority (if there is information sufficient to calculate property taxes) sends the person who inherited a tax notice about the payment of land tax and property tax for individuals. In this case, the heir must pay the specified taxes from the month of opening of the inheritance.
L.A. Elina, economist-accountant
A relative has died: should I pay property taxes for him?
When a loved one dies, you have to think about a lot. Not first, but not least - about the tax debts of the deceased, if you are his heir subp. 3 p. 3 art. 44 Tax Code of the Russian Federation.
The heirs will not have to pay personal income tax for the deceased. For example, if the testator did not receive a salary at work, which was accrued to him after death, then the employer must issue/transfer such amounts to the heirs without withholding personal income tax clause 18 art. 217 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated June 10, 2015 No. 03-04-05/33652.
When a heir inherits real estate, he becomes a payer of land tax and/or property tax from the date of death of the testator (from the date of opening of the inheritance a) clause 4 art. 1152, paragraph 1, art. 1114 Civil Code of the Russian Federation; Letter of the Federal Tax Service dated February 21, 2014 No. BS-4-11/3179. Moreover, even in the case when the certificate of ownership of the land/apartment or other real estate was received later. But the heir will pay transport tax on the inherited car only from the date of its state re-registration in his name Articles 357, 358 of the Tax Code of the Russian Federation.
However, at the date of death, the testator could have debts on property taxes: transport, land and personal property taxes. Let's talk about whether the heirs need to repay such debts.
Assessing the situation
As a general rule, heirs are liable for the debts of the testator for property taxes to the extent of the value of the inheritance they received. clause 3 art. 44, paragraph 6 of Art. 58 Tax Code of the Russian Federation. And even then not always.
Let us remind you that a citizen’s obligation to pay any of the property taxes arises only from the day he receives a tax notice from the inspectorate, in which it must calculate the tax clause 4 art. 57 Tax Code of the Russian Federation. Therefore, in order to understand whether the debts of the deceased need to be paid, it is important for the heirs to determine whether the tax notice is considered received during the life of the testator or not.
There are cases where the inspectorate was unable to confirm that tax notices were sent to him during the life of the testator - there is no confirmation of delivery. And the court refused to allow the tax authorities to collect taxes and penalties from the heir.
If you find a notice issued to the testator and sent by registered mail, add 6 working days to the date the inspection sent such notice clause 6 art. 6.1, paragraph 4 of Art. 52 Tax Code of the Russian Federation. Next see:
- <если>the testator died before this date, then there is no need to pay his tax debts - the inspectorate must reverse them.
If the inspectorate already knows about the death of an individual at the time of tax calculation, then it should not charge tax at all;
- <если>the testator died later, which means that the tax debt arose during his lifetime and such a debt passes to you by inheritance clause 3 art. 44, paragraph 6 of Art. 58 Tax Code of the Russian Federation. So if you inherited an apartment, country house, car or other property, you can pay for the notifications yourself. If you do not do this, the tax office will issue a new notice - this time in your name. She has the right to do this as soon as she receives a message about the issuance of a certificate of inheritance to the heirs. Please note: notaries must inform the Federal Tax Service at their place of residence within 5 days about the issuance of such a certificate. clause 6 art. 85 Tax Code of the Russian Federation; pp. 1, 2 tbsp. 1163 Civil Code of the Russian Federation; Letter of the Federal Tax Service dated November 12, 2014 No. SA-4-14/23364.
If the envelope with the stamp on sending the tax notice has not been preserved, but you know that the testator received it during his lifetime, you can also voluntarily pay the testator’s debt or wait until the inspectorate transfers it to you.
If unpaid tax notices are not found in the testator's personal belongings, this does not mean that there are no such debts. Notifications may have been lost. There is another option. Since 2015, tax authorities can issue tax notices electronically. This is what the Ministry of Finance specialist told us.
FROM AUTHENTIC SOURCES
Head of the Department of Property and Other Taxes of the Department of Tax and Customs Tariff Policy of the Ministry of Finance of Russia
“ As before, the amounts of transport tax, land tax, property tax for individuals for which tax notices were not received by the individual before his death are subject to write-off by the tax authority Letter of the Ministry of Finance dated July 14, 2010 No. 03-05-04-01/38. It is necessary to take into account that in 2014, amendments were made to the Tax Code to supplement its Art. 11.2 “Taxpayer’s personal account.” They are effective from July 1, 2015. Now the taxpayer (testator) can give consent (notify the tax authority) to use a personal account on the Federal Tax Service website to receive from the inspection documents used in the exercise of powers in relations regulated by the legislation on taxes and fees. In this case, the amount of tax accrued in your personal account is equivalent to the receipt by the taxpayer of a tax notice.
I note that only the heirs who accepted the inheritance are liable for the debts of the testator. Art. 1178 Civil Code of the Russian Federation” .
Thus, if a deceased relative had a personal account on Federal Tax Service website and tax notices were not sent to him by mail before the date of his death, this does not mean that the heirs do not have debts to pay property taxes for the deceased.
After entering into an inheritance, you don’t have to find out on your own whether tax debts have been inherited or not. It is the responsibility of the inspectorate to collect them. Just don’t be surprised when you receive a notice to pay the tax debt incurred by the testator.
But if you want to find out in advance whether you will have to pay any tax debts for the deceased or not, you can contact the inspectorate that is responsible for administering a specific tax:
- <если>you are interested in the debts of the deceased for payment of land tax or property tax - at the location of the property;
- <если>you are interested in debts for payment of transport tax - at the place of registration of the car (as a rule, it coincides with the last place of residence of the testator).
Controversial issues of collecting tax debts from heirs
The Tax Code says little about what property tax debts can be recovered from heirs.
QUESTION 1. For what period can the inspectorate issue a “tax invoice” to the heirs?
As a general rule, only those debts for which the statute of limitations has not expired can be transferred to the heirs. clause 3 art. 1175 Civil Code of the Russian Federation. However, the Tax Code does not provide for any single period during which tax authorities can go to court to collect tax debts. For personal taxes, the period for going to court depends on the amount of arrears and other conditions - we will talk about this a little later.
Please also note that according to the norms of the Tax Code, the inspectorate does not have the right to write off old debts: after all, they cannot be considered hopeless for collection. subp. 3 p. 1 art. 59 Tax Code of the Russian Federation. Therefore, it is very likely that the inspectorate will recharge the heirs for all of the testator’s property tax debts. Here is what the Ministry of Finance specialist thinks about this.
FROM AUTHENTIC SOURCES
“If tax notices for property tax were received by the deceased during his lifetime, but the tax was not paid by him, then by virtue of Art. 44 of the Tax Code of the Russian Federation, the obligation to pay it rests with the heir. The tax authority must send a tax notice to the heir indicating the amount of tax debt. And this notice indicates the debts of the deceased for all previous years for which the testator received notices but did not pay tax - in this case no time restrictions apply.
The rule regarding recalculation for the previous 3 years applies to cases where the taxpayer has not received notifications, for example, for 5 years, and then the tax authority has the right to make tax calculations only for the previous 3 years. If the taxpayer received notices (5 years), but did not pay the tax, this is a different case and the debt will hang on him and his heirs.
If the heir has received a tax notice, but the tax has not been paid, then the tax authority is obliged to send the taxpayer a demand for payment of the tax. If, taking into account the sent demand for payment of tax, the tax is not paid, then the issue of collecting the unpaid amount of tax will be resolved in court.
If the tax notice to the heir-taxpayer is not received from the tax authority on time, then the provisions established by clause 3 of Art. 363, paragraph 4 of Art. 397, paragraph 3 of Art. 409 of the Tax Code of the Russian Federation. This means, in particular, that the tax office cannot send a notice to the heirs to pay debts on these taxes of the deceased testator later than 3 years from the date the notary issued a certificate of acceptance of inheritance. clause 6 art. 85 Tax Code of the Russian Federation” .
Ministry of Finance of Russia
Once, when considering a dispute between an heir and an inspectorate in court, a representative of the Federal Tax Service explained that “from the moment when the Federal Tax Service Inspectorate receives information from a notary about the death of a taxpayer and his heirs, the personal account in the database for the taxpayer who died is automatically closed, and all debt on taxes goes to the heir who accepted the inheritance o" Decision of the Oktyabrsky District Court of Penza dated September 28, 2015 No. 2-1861/2015. It turns out that the program itself transfers to the heir all debts of the testator for property taxes, regardless of the time they arose.
So, even if you have been overcharged for the debts of a deceased testator for several years, but their total amount is within your means, it is easier to pay it on time. Otherwise, get ready for a dispute with the inspectors.
QUESTION 2. Are penalties and fines on property taxes inherited?
The Tax Code does not clearly state whether the debts of the deceased for tax fines and penalties are transferred to the heir. A specialist from the Ministry of Finance believes that since the Tax Code does not say anything about the obligation of heirs to pay these amounts, they should not transfer them.
FROM AUTHENTIC SOURCES
“The inheritance does not include obligations the transfer of which by inheritance is not permitted by the Civil Code or other laws and Art. 1112 Civil Code of the Russian Federation. Article 44 of the Tax Code does not provide for the transfer of the testator's obligation to pay penalties or fines to his heirs; it only talks about the transfer of the obligation to pay transport, land tax and property tax for individuals subp. 3 p. 3 art. 44 Tax Code of the Russian Federation. But the concepts of “tax”, “fines” and “penalties” are different Art. 8, paragraph 2, art. 57, Art. 122 Tax Code of the Russian Federation. Therefore, in my opinion, the debt of the testator for fines and penalties should not be paid to his heirs and.”
Ministry of Finance of Russia
In practice, inspectorates often try to collect penalties from heirs. And if the latter do not resist, the Federal Tax Service gets its way. And the courts only validate what happened Decisions of the Koshekhablsky District Court of the Republic of Adygea dated September 15, 2015 No. 2-807/2015, dated September 14, 2015 No. 2-779/2015; Shovgenovsky District Court of the Republic of Adygea dated August 31, 2015 No. 2-249/2015; Serpukhov City Court of the Moscow Region dated 10/07/2015 No. 2-3099/2015.
If the heir is persistent, supported by arguments with references to the Tax Code, success is possible. Thus, one of the courts indicated that “from the literal interpretation of the provisions of sub. 3 p. 3 art. 44 of the Tax Code of the Russian Federation it follows that the obligation to repay debts exclusively for taxes passes to the heirs. There is no such obligation regarding penalties. Decision of the Nytvensky District Court of the Perm Territory dated 02/02/2012 No. 2-53/2012.
READER'S OPINION
“I believe that the obligation to pay a fine transferred by succession is no more adequate than the transfer under a civil contract of the obligation to serve time in prison.”
Mikhail I.,
lawyer, Moscow
Tax authorities may try to collect from the heirs and the testator's property tax penalties. website of the Federal Tax Service of Russia.
The chances of challenging their payment are high. After all, a fine is a measure of personal responsibility for a violation. It presupposes the presence of guilt and cannot be passed on to the heirs: they should not be responsible for the deceased.
Once, the court directly stated that the heirs receive the obligation to pay off the debt solely on the property taxes themselves, and not on sanctions in relation to such taxes. Decision of the Kolpashevo City Court of the Tomsk Region dated April 2, 2012 No. 2-267/2012.
Even if the inspection requires you to pay a fine for the testator, it is unlikely that it will collect it in court. We have not seen court decisions on such disputes. Moreover, there are cases where such fines were accrued, but the inspectorate demanded payment only of the amount of arrears of tax and penalties Decision of the Serpukhov City Court of the Moscow Region dated October 7, 2015 No. 2-3099/2015.
CONCLUSION
As we see, even judges do not have a consensus on the need for heirs to pay penalties on the testator’s tax debts.
But the likelihood of tax penalties accrued to the deceased being collected from the heirs in court is low.
Fighting off “inherited” debts: attention to collection deadlines
Tax authorities often go to court to collect arrears after missing the deadline.
ATTENTION
The court will assess the limitation period only if the individual makes a statement about this before the court makes a decision clause 2 art. 199 Civil Code of the Russian Federation.
Please note that the inspectorate may miss the deadline for collecting tax debts both during the life of the testator (in this case, tax debts should not pass to the heir at all), and after such debts have passed to the heirs.
In order to understand that the inspectorate actually missed the deadline for going to court, you need to know the date the tax arrears were discovered. It is determined by the tax notice for payment of property taxes: we look at the last day of the deadline for paying the tax, and the first day following it will be the date of arrears and clause 2 art. 11 Tax Code of the Russian Federation.
The period for collecting property debts of citizens in court depends on the amount of the tax debt. Its calculation is not easy, and often it is necessary to take into account the deadline for repaying the tax arrears, which the inspectorate indicated in its request. It cannot be less than 8 working days, but it can be more clause 6 art. 6.1, para. 4 clause 4, clause 8 art. 69 Tax Code of the Russian Federation.
To simplify, we will assume that the inspection indicated in the request: the arrears must be paid within 1 month. Let's see how the period for collection is determined if there is a debt based on only one tax notice clause 2 art. 48, paragraph 1, art. 70 Tax Code of the Russian Federation:
- <если>the amount of debt specified in the demand is 3,000 rubles. or more, then the tax authorities must go to court within 10 months from the date the arrears arose (3 months to file a claim, 1 month to repay the arrears upon request, 6 months to go to court);
- <если>the amount of debt is less than 3,000 rubles, but more than 500 rubles. or equal to them, then the inspectorate can collect such a debt in court within 4 years from the date the arrears appeared (3 months to file a claim, 1 month to repay the arrears, 3 years and 6 months to go to court);
- <если>the amount of the debt is less than 500 rubles, then the tax authorities can collect it in court within 4 years and 7 months from the date the arrears arose (1 year to file a claim, 1 month to repay the arrears, 3 years and 6 months to go to court).
If several claims of tax authorities have not been paid, then the time frame for going to court is considered more difficult and may be shorter (but not more than for single claims). Therefore, if for the tax debt for each unpaid claim the collection period has already passed, then for the aggregate of debts for several such claims it has also expired.
The Tax Code has clear deadlines for filing a tax payment claim. If the inspection made a demand before the deadline, then the total period for going to court will be shorter. But the inspection may send a request later than the specified deadlines. However, in this case, the period for going to court should not be increased. Definitions of the Constitutional Court dated April 22, 2014 No. 822-O, dated March 22, 2012 No. 479-O-O; clause 24 of the Resolution of the Plenum of the Supreme Arbitration Court of June 22, 2006 No. 25; clause 6 of the Information Letter of the Presidium of the Supreme Arbitration Court dated March 17, 2003 No. 71; Resolution of the Presidium of the Supreme Arbitration Court of November 1, 2011 No. 8330/11.
The easiest way is if the inspectorate did not have time to go to court in time to collect the tax debt on a claim made in the name of the heir. In such cases, the courts refuse the tax authorities if the heir claims to have missed the deadline for going to court, provided for in Art. 48 Tax Code of the Russian Federation Decision of the Starorussky District Court of the Novgorod Region No. 2-167 (came into force on March 22, 2013); Appeal ruling of the Judicial Collegium for Civil Cases of the Supreme Court of the Republic of Tatarstan dated September 10, 2012 No. 33-9182/2012; Decision of the Sarapul City Court of the Udmurt Republic dated September 25, 2015 No. 2-1102/15 No. 2-1861/2015.
Sometimes inspectors, having missed the deadline for judicial collection of debts during the life of the testator, are cunning. They transfer the debts to the heirs and propose that the court consider the statute of limitations from the date of delay in their payment, indicated in the demand made in the name of the heirs. But the courts do not support the tax authorities. So, one day the court ordered Decision of the Zavolzhsky District Court of Ulyanovsk dated October 6, 2014 No. 2-3858/14 that when claims are made against the heirs by the testator's creditors, the limitation period is not subject to interruption, suspension or restoration clause 3 art. 1175 Civil Code of the Russian Federation; clause 59 of the Resolution of the Plenum of the Supreme Court of May 29, 2012 No. 9.
CONCLUSION
If you suspect that the inspection has missed the statute of limitations, your business is to declare this and refer to the necessary norms of the Tax Code: Articles 48 and 70 of the Tax Code of the Russian Federation. Even if you are wrong, the inspectorate will present its objections and, after evaluating the arguments of the parties, the judge will make a decision. There will be no negative consequences for making an erroneous statement in court.
Attention: court order
Some heirs think that they can safely not pay the debts of the testators. And if the inspectorate wants to collect them, it will have to go to court, where the heir must also be summoned. And in this court, the inspectorate will have to prove when tax debts arose and why the heir must pay them.
This is how it is now. However, everything may soon change. A bill has already been prepared to amend the Code of Administrative Procedure of the Russian Federation, providing for the possibility of collecting tax debts from citizens on the basis of a court order, which is both a court decision (resolution) and an executive document. It will be made by a magistrate if the applicant’s claims are undisputed draft Federal Law No. 887446-6. Moreover, the judge does not even ask the opinion of the individual - the taxpayer.
This is exactly the procedure that was in effect until September 15, 2015. Both in 2014 and in the first half of 2015, about 98% of cases on the requirements of the tax authorities were considered by courts of general jurisdiction and magistrates with the issuance of a court order.
If you have already been sent a court order (the tax authorities could have received it until September 15, 2015. Part 1 Art. 121, Art. 122 Code of Civil Procedure of the Russian Federation (as amended, valid until September 15, 2015)) and you do not want to pay the tax debts specified in it, you must submit written objections to the judge who issued the order within 10 days from the date of receipt (if the mentioned amendments to the CAS of the Russian Federation are adopted, then 15 days will be allotted for this). There is no need to justify your refusal in any way. Art. 128 Code of Civil Procedure of the Russian Federation.
After the court order is canceled, tax officials will be able to go to court. There, the case will already be considered on its merits, with you involved as a defendant, and you will be able to file objections.
Do not forget that, in addition to tax debts, the testator could have others. For example, debts on bank loans. Their heir will have to pay within the value of the inherited property received. So the heir who received an apartment for which the mortgage has not yet been fully paid will have to repay the debt to the bank Art. 1175 Civil Code of the Russian Federation.
When receiving an inheritance, the question often arises: is the inheritance considered income and is it necessary to pay 13% personal income tax on it? In this article we will look at inheritance tax issues.
Inheritance is not subject to income tax
When receiving an inheritance in any form (cash or property), you DO NOT need to pay income tax(Clause 18, Article 217 of the Tax Code of the Russian Federation).
Example: Dubrovin L.P. inherited an apartment from his sister. According to paragraph 18 of Art. 217 of the Tax Code of the Russian Federation, income in kind received by inheritance is not subject to taxation. Therefore, Dubrovin L.P. There is no need to declare inheritance income and pay tax.
In this case, unlike the gift tax, the degree of relationship with the testator does not matter.
Example: Krasilnikova A.A. I inherited money from a friend in the amount of 3 million rubles. Since the degree of relationship with the testator does not matter, and according to paragraph 18 of Art. 217 of the Tax Code of the Russian Federation, income in cash received by inheritance is not taxed, Krasilnikova A.A. exempt from filing a declaration in form 3-NDFL and paying tax.
The only exception is when you need to pay tax on income when receiving an inheritance, is to receive remuneration paid to the heirs (legal successors) of the authors of works of science, literature, art, as well as discoveries, inventions and industrial designs (clause 18 of article 217 of the Tax Code of the Russian Federation).
Example: In 2019, Kamenisty D.I. After the death of his father, he inherited a reward of 80,000 rubles for a work of literature he wrote. According to paragraph 18 of Art. 217 of the Tax Code of the Russian Federation, upon receipt of remuneration paid to the heirs of authors of works of literature, income from inheritance is subject to income tax. Therefore, at the end of 2019 (until April 30, 2020) Kamenisty D.I. filed a 3-NDFL declaration with the tax office and paid tax in the amount of 80,000 x 13% = 10,400 rubles. until July 15, 2020.
Tax on the sale of inherited property
As we noted, there is no need to pay tax when receiving an inheritance. It is important to understand that if you sell inherited property that you have owned for less than 3 years, you will have to pay income tax.
Example: In 2018, Novikova G.L. I inherited an apartment from my uncle. In 2019, she sold this apartment. Since the period of ownership of the apartment was less than 3 years, Novikova G.L. at the end of 2019 (by April 30, 2020), she will have to submit a declaration in form 3-NDFL and pay income tax at a rate of 13% by July 15, 2020.
If you owned the inherited property for more than 3 years, you will not have to pay income tax (Clause 17.1, Article 217 of the Tax Code of the Russian Federation).
Example: Veselov T.B. Inherited an apartment from my sister in 2013. In 2019, he sold this apartment. Since the apartment was owned by T.B. Veselova. more than 3 years, he does not have to file a 3-NDFL declaration and pay tax on income from the sale of housing.
The beginning of ownership of the inheritance is considered from the date of opening of the inheritance (the day of death of the testator), and not from the date of its actual acceptance or the moment of state registration of the right to property.
Example: Vasiliev D.K. inherited the apartment of his grandmother, who died in 2015. Certificate of ownership of the apartment Vasiliev D.K. received in 2016. In 2019, he sold this apartment. An accepted inheritance is recognized as belonging to the heir from the date of death of the testator. Therefore, when selling an apartment in 2019, Vasiliev D.K. does not have to pay income tax, since the period of ownership of the apartment was more than 3 years (from 2015 to 2019).
Note: The tax authority may notify you in writing that you have received income from the sale of real estate and must submit a 3-NDFL return. This happens because the tax authority knows about the date of registration of the certificate of ownership of real estate, but not about its actual ownership. In this case, it is enough to write to the tax office describing the situation and attach to the letter documents confirming the period of ownership of the property (a copy of the death certificate of the testator).
You can read more about the tax on the sale of property and how to reduce it in our articles:
There is no need to pay inheritance tax. If this was the only question you were interested in, don't worry. However, in an inheritance case, after accepting the property, you will have to bear many other expenses. In this article we will tell you how to calculate the amount of inheritance duty and save on its amount, what taxes you need to pay after receiving a certificate from a notary.
Not many people still know that inheritance tax has not been paid for almost 20 years. This is not surprising, since we have to deal with inheritance matters quite rarely, although we would like to completely eliminate such an unpleasant procedure. A tax-free inheritance does not mean that the recipients of the estate will not have to incur other expenses. First of all, this concerns the notary fee, which is actually an alternative tax fee.
Also, a number of taxes will have to be paid after inheritance:
- for the property of individuals - charged for each year of ownership of real estate;
- on the income of individuals (personal income tax) - upon the sale of inherited assets, if the citizen has made a profit;
- on land - if the hereditary base included a plot;
- for transport - accordingly, it is charged for each year of ownership of vehicles inherited from the deceased testator.
note! According to the terms of the will, even a legal entity can receive real estate, vehicles and belongings of the deceased. Businesses also do not pay inheritance tax. After receiving the certificate, organizations will have to calculate and pay land and transport tax, property tax for legal entities, and income tax.
Uniform taxation rules in Russia are established by the Tax Code of the Russian Federation. Regions and local authorities can only change the rates, calculation procedure and payment deadlines for certain types of councils. However, they do not have the right to accept their own taxes that are not specified in the Tax Code of the Russian Federation. Therefore, the introduction of any direct or indirect inheritance taxes at the local or regional level is excluded.
What is included in the expenses when entering into an inheritance?
The state linked the removal of the obligation to pay inheritance tax with the introduction of a state duty. In fact, the notary fee for issuing a certificate has the same principles as taxation - it is charged as a percentage of the value of the property, and provides benefits for full and partial exemption from payments. Only certain categories of beneficiaries may not pay the state fee to a notary. Below we will tell you how to save on payments at the notary's office.
State duty
You must pay a fee for obtaining a certificate from a notary in accordance with Art. 333.24 Tax Code of the Russian Federation, Art. 23 Fundamentals of legislation on notaries. State duty rates depend on the degree of relationship of the heirs with the deceased and the value of the property:
- for close relatives - 0.3% of the asset price, but not more than 100 thousand rubles;
- for distant relatives, strangers and organizations – 0.6%, but not more than 1 million rubles.
Note! Only those who actually receive the certificate at the notary's office will have to pay the fee. For example, if a distant relative applied for an inheritance, but did not receive it according to the principles of priority, no state duty will be charged.
Legal advice. If the law gives the right to benefits from state duty or inheritance taxes, it must be properly confirmed. At the stage of the inheritance case, you need to present the relevant document to the notary - a certificate of disability, a veteran’s certificate, and other forms. There is no need to confirm the benefit if the heir is a minor child. In this case, the very fact of providing a passport or birth certificate will allow the notary to check the age of the recipient of the property and issue a certificate without any payments.
The law includes the surviving spouse, natural or adopted children, parents, full sisters and brothers of the deceased as close relatives. It does not matter how the inheritance is formalized in favor of these persons. When inheriting by will and by law, the duty rates will be the same. The surviving spouse qualifies as a close relative if the marriage has not been dissolved at the time of death.
Naturally, if a couple lived without registering family relations, they will have to pay state duty at a high rate, i.e. 0.6% of the property value. For children born outside of a registered marriage, no problems arise with confirming kinship. If at the time of death there were no documents confirming a biological connection with the deceased parent, they can be obtained from the archives of local administrations, through the registry office, or in court. Moreover, it is even possible to establish paternity through a court after death and conduct a post-mortem DNA examination. You can learn more about these methods of proving kinship during a consultation with our lawyers.
UPH
The list of notarial actions that may entail additional costs includes legal and technical services (LTC). I am sure that each of you has had to deal with this fee whenever you have any questions about contacting a notary. The UPH includes:
- legal analysis of documents, their drafts, information - in fact, the notary must give a legal assessment, explain compliance or contradiction with the law;
- consultations on legislation, implementation of notarial powers and duties;
- preparation of documents at the request of citizens and legal entities;
- making copies of any documents, including for subsequent notarization;
- storage of documents, funds;
- other services (in fact, their list is limited only by the notary’s imagination and price list).
All listed services are paid. The maximum rates for UPH are approved by the higher notary chamber. In practice, a notary will always charge for UPH at the maximum approved rate, since it makes no sense for him to voluntarily refuse money. Read more about it at the link.
Legal advice. Formally, legal and technical services are voluntary, i.e. It’s quite possible to do without them. For example, a notary is obliged to certify a draft agreement or other document drawn up by the parties independently. In practice, everything is more complicated. The notary will always find an excuse (if desired) to point out the slightest flaws in the document and casually recommend that the document be drawn up in his office. How to behave in this situation is up to you. You can demand a notarial act, or contact another office, or agree and pay for the UPH.
When entering into an inheritance, legal and technical services may include:
- in copying certificates, documents of title and other documents;
- in preparing an agreement between heirs (for example, on the redistribution of certain types of property, replacing them with monetary compensation);
- in checking documents related to confirmation of inheritance rights.
The opening and reading of a will and the acceptance of statements from potential heirs are not included in the UPC. Such services relate to direct notarial actions and are subject to payment of state duty in accordance with the Tax Code of the Russian Federation.
Cost of certificates
During the inheritance case, you will have to confirm your rights, composition and value of property, and prove other facts. The following information may be required for this:
- about the inventory value of real estate - issued by the BTI, costs from 300 to 3000 rubles. (depending on the category of the object, the urgency of registration);
- about the cadastral value of an apartment, plot, garage, other objects - can be obtained through Rosreestr, MFC, government services portal (the certificate is issued free of charge, and the cost of an extract from the Unified State Register indicating cadastral data ranges from 200 to 700 rubles);
- from the traffic police about the presence or absence of registered vehicles - issued free of charge;
- archival death certificate (not to be confused with a death certificate) - costs 100 rubles, and the issuance period depends on the place of application;
- archival certificates from the local administration (may be required to confirm the fact of relationship) - issued free of charge;
- about cohabitation with the deceased (may be required for priority entry into inheritance) - issued free of charge by management companies, local administrations, MFCs, and other departments.
This is not a complete list of documents that may be required when participating in an inheritance case. Usually the notary himself explains what and who must present. However, they probably won’t tell you about the possibility of using some certificates, since they directly reduce the amount of fees. We are talking about documents confirming the value of real estate. Below I will tell you how the necessary certificate will allow you to significantly save on fees, although the notary will probably put a spoke in your wheels.
Additional expenses
There are a number of optional expenses that, however, may arise during the probate process or after its completion. It could be:
- payment for the services of a representative, notarized power of attorney (the representative can be delegated the authority to submit an application, collect documents and certificates);
- payment of compensation to other claimants for inheritance, if an agreement is concluded (for example, in order not to divide the plot into several shares, you can agree to pay compensation for them);
- postage costs if documents are submitted to the notary in this way;
- other expenses, depending on the specifics of the inheritance matter.
Please note that it is not enough to send an application for inheritance by mail. The signature on this document must be certified by a notary. Therefore, if you live in a city where the inheritance case is being conducted, it is better to find the time and submit the application in person to the notary’s office. You will save on costs for signature certification and postage.
Collection of taxes from heirs
An unpleasant surprise for the heirs may be a demand for repayment of the debts of the deceased. This possibility is provided for by the Civil Code of the Russian Federation and is as follows:
- Only those persons who have confirmed their desire to enter into the inheritance and have received a certificate will be liable for the obligations of the deceased;
- the debts for which the heirs may be required include tax obligations, arrears on loans and utilities, arrears of alimony, etc.;
- if three years have passed since the debt was formed, the heirs are not required to pay;
- the amount of the presented debt will be repaid by the heirs within the value of the property received.
Legal advice. If only low-value movable property is left by inheritance, sometimes it makes sense to give it up. It is necessary to estimate the amount of the fee that the notary will have to pay, the composition of other expenses, and the amount of the deceased’s obligations. Naturally, if we are talking about an apartment, a car, or other expensive assets, the option of refusal is not considered. Then you need to clarify how much the testator owed at the time of death in order to be prepared to present demands, claims and suits.
Typically, the Federal Tax Service collects taxes in a timely manner. Therefore, in an inheritance case it is possible to encounter such claims only in rare cases. However, if the tax authority did not have time to collect the arrears and penalties at the time of the owner’s death, the heirs will have to answer for the debts.
Be sure to clarify the grounds, amount and size of the presented debt. If the statute of limitations has expired, immediately prepare a corresponding petition. As soon as the creditor goes to court, demand that the case be dismissed after the statute of limitations has expired. Also, the heirs may object to the correctness of the calculation and the timing of the accrual of penalties. Find out more about these nuances from our lawyers during your consultation.
Procedure for paying state duty for inheritance
Unlike fees for the provision of state and municipal services, payment for issuing an inheritance certificate is accepted by the notary himself. It is not possible to pay for notarial acts through a bank or in any other way. To calculate the amount of the fee, upon completion of the inheritance case, the following is determined:
- the number of recipients of the deceased’s property by will and by law, i.e. persons who have submitted an application and have the right to inheritance;
- the size of the shares due to each heir (in case of inheritance by law, they will be equal, while under a will other options for the distribution of shares are allowed);
- the value of property assets, the amount of money transferred by inheritance.
To determine who to issue the inheritance certificate to, the notary checks the submitted applications. According to the terms of the will, property will be received only by those persons indicated by the owner before his death. If there is no will, and inheritance is carried out according to law, the principle of priority applies. The closer the degree of relationship, the higher the priority of the order. First of all, they include the parents, surviving spouse, and children of the deceased. Accordingly, only in the absence of heirs of the first priority, or if they renounce their rights, will applicants of lower priority be able to receive property.
How to determine the value of property for inheritance
To calculate the state fee for issuing a certificate, the notary needs to know the value of the property. It is determined in the following ways:
- for real estate objects - according to the cadastral, inventory or market value of the object;
- for balances on accounts and deposits - at the nominal value of money;
- for other types of property, including movable things and objects, vehicles, objects of intellectual value, shares in a business, and other similar assets - according to the reports of an independent appraiser.
The heirs themselves must order a market valuation, otherwise they will not be able to obtain a certificate . If only one citizen claims the inheritance, he himself chooses a specialist to conduct an assessment and draw up a report. If there are several heirs, you can choose an appraiser by mutual agreement. If a dispute arises, any of the claimants to the inherited property can challenge the results of the appraisal activities.
Each heir pays the fee in proportion to his share. In practice it looks like this. If the apartment was inherited by only one person from the first stage, he will pay 0.3% of its price for it, but not more than 100 thousand rubles. For example, if the cost of the object is 2 million rubles. you need to pay 60 thousand rubles. However, if there are 3 heirs in the first place, they pay the fee in proportion - 20 thousand rubles each. (subject to equal shares). If one of the heirs has a benefit, the state duty rate will not change for the remaining recipients of the property.
The money is paid directly to the notary when the certificate is issued. Upon payment, an entry is made in the register of notarial acts, and the payment amount will be indicated in the certificate. By the way, you can always check the legality of actions taken and documents issued using the register. A notary in any city has access to a single register and can verify that the certificate was actually issued.
How to save on state duty for receiving an inheritance
In the previous paragraph, I deliberately did not talk about some of the nuances of determining the price of property. If you know your rights, in some cases you can completely legally reduce the amount of duty. We are talking about real estate that is inherited. The law allows heirs to choose for themselves at what cost the state duty will be calculated:
- by cadastral value - this data is contained in the Unified State Register of Real Estate, it can be obtained from a certificate or extract from Rosreestr, MFC (usually the notary requests such data independently through electronic resources);
- by inventory value - this information can be obtained from the BTI authorities at the location of the object;
- at market value - it is determined on the basis of the report of an independent appraiser who is a member of the SRO.
What is the meaning of choice? The fact is that the indicated cost indicators may differ significantly. In practice, the inventory value is much lower than the cadastral or market price of the object, since it is calculated based on standard wear and tear indicators. In large cities, the difference can reach hundreds of thousands of rubles, which, accordingly, reduces the amount of state duty.
Legal advice. The notary is not obliged to offer a choice between different values. If you do not submit the documents yourself, in 99% of cases a certificate of the cadastral price of the property will be requested to calculate the duty. Coincidence? I don’t think so... The notary keeps the money from the fee for himself. Accordingly, he is indirectly interested in calculating the highest possible value of real estate. If you contact the BTI and receive a certificate of the inventory price, you will certainly save on costs. The cost of the certificate will be disproportionately lower than the overpayment of state duty.
The notary has no right to refuse if the heir presents a report on the market price or a certificate of inventory value. If you encounter a refusal, you can file a complaint with the regional or federal notary chamber. Such points are easily verified, so the notary will be required to follow the law. For this reason, I recommend submitting a cost certificate in advance, i.e. until the completion of the inheritance matter. It is always better to have a buffer in case of possible failure.
It is generally not necessary to obtain a certificate for movable things, since rights to them are not registered. If there is no dispute between the heirs about the order of distribution of things, they can be divided among themselves. Without applying to a notary for a certificate, you will not have to pay a fee.
Savings are more difficult for cars, business shares or enterprises. In this case, only market valuation data is applied. However, if the share in the business is the presence of real estate, you can also use the option with inventory value for them.
How not to pay a notary fee
Article 338.38 of the Tax Code of the Russian Federation specifies a number of categories of citizens who can completely or partially avoid paying state duty in an inheritance case. These include:
- disabled people of group I or II will pay only 50% of the calculated duty;
- persons who inherit a house and plot, apartments, rooms, or shares in these objects, if at the time of death they lived with the testator and remained living there, may not pay the fee at all;
- persons receiving inheritance from citizens who died in the performance of state or public duties are completely exempt from duties;
- minor children do not have to pay state duty for any type of inheritance or any property;
- citizens suffering from mental illness and over whom guardianship has been established do not pay fees for any type of inheritance on any property;
- heirs of workers who died as a result of an accident at work are exempt from state duty regarding the inheritance of insurance payments.
In practice, most often state duty benefits are provided to children and disabled people. Also, Article 338.38 of the Tax Code of the Russian Federation exempts from payment of inheritance tax (duty) bank deposits of any amount, current unpaid salaries and pensions, as well as debt on them, royalties for copyrights.
Legal advice. If you want to avoid paying fees at all, leave a minor child as your sole heir. If there is a will, this is difficult to do, since the circle of recipients of the property is determined by the testator himself. But when inheriting by law, this is easy to do - all other heirs of the first priority must declare a waiver of their rights in favor of the child. When issuing a certificate for children, their interests are represented by legal representatives (parents, guardians, trustees).
Transferring the entire inheritance to a child can lead to serious problems. By saving on state fees, you may lose the opportunity to sell or donate property. Until a child turns 18, donating real estate or other inherited items is generally prohibited, and for sale you must obtain the consent of the guardianship authority. Therefore, carefully evaluate all the consequences of such a decision and consult with a lawyer. If the child is almost 18 years old, or you do not plan to manage the inherited property, feel free to use this saving option.
Do I need to pay taxes on inheritance received?
We have already talked about this in previous materials. Having received the certificate, the heir will be able to register rights to real estate and vehicles, take possession and use of movable things. This automatically entails tax obligations. Consequently, the inheritance tax will be indirectly expressed in other forms of fees:
- Personal income tax must be paid when selling real estate or renting it out;
- property tax is withheld for the ownership of real estate;
- transport inheritance tax must be paid if you received a car or other vehicle using a notary certificate;
- land tax is withheld for ownership of a plot of land.
A peculiarity of taxation of individuals is the calculation of the amount of payments by tax authorities. This means that by registering your rights with Rosreestr and the State Traffic Safety Inspectorate, you don’t have to contact the Federal Tax Service. All information will be transferred to the tax service automatically. Receipts with settlements are sent by mail or through the taxpayer’s Personal Account on the Federal Tax Service website. You can also clarify the tax amounts and pay them through the government services portal.
An exception is the calculation of personal income tax when selling real estate and vehicles. For all amounts received from such transactions, you need to submit a declaration to the Federal Tax Service, independently calculate deductions and the amount payable to the budget. We will discuss the specifics of paying taxes below.
Who should pay inheritance taxes?
Tax obligations apply only to owners. Until real estate or vehicles are registered, tax will not be charged. However, it will be impossible to dispose of such property. The law does not require a deadline for applying for registration, so you don’t have to rush through this procedure. However, if you are planning a sale, exchange or other transaction, a notarized certificate must be submitted for registration.
For possession and use of property
Depending on the type of property inherited, taxes must be paid at the following rates:
- property tax on real estate is a local tax, so the exact rates are approved by municipalities. The marginal rate under the Tax Code of the Russian Federation is 0.1% of the cadastral value of the object (it is indicated in the Unified State Register of Real Estate);
- land tax is also a local tax, and the maximum rate is 0.3 or 1.5% of the cadastral value (depending on the category and purpose of the site);
- transport tax - approved by the constituent entities of the Russian Federation, depends on the capacity, year of manufacture, environmental class of the transport. The base rates specified in the Tax Code cannot be 10 times higher or lower in the regions.
There are many benefits at the federal, regional and local levels that will allow you to reduce the amount of tax or not pay it to the budget at all. For example, land owners receive a deduction in the amount of the cadastral value of 6 acres. You can find out what benefits apply in your region and municipality at the tax office at your place of residence.
When selling
Receiving property by inheritance implies receiving a gratuitous benefit. Therefore, after selling inherited real estate or transport, you need to fill out a declaration, calculate personal income tax at a rate of 13%, and pay tax. You can avoid taxation or reduce the deduction amount by:
- when owning real estate for more than three years (regardless of the type and cadastral value);
- if owned for less than three years, you can reduce the value of the property to calculate the tax deduction of 1 million rubles. (from the remaining amount you need to pay 13% to the budget);
- if you have owned a car for less than three years, you can reduce the cost by deducting 250 thousand (13% personal income tax is paid on the remaining amount).
Note! The 3-year tenure is valid only when receiving an inheritance from family members or a close relative. In other cases, you can avoid paying personal income tax after 5 years. The specified period is counted from the date of registration.
In this article, we talked about general issues related to paying taxes, state duties and other inheritance expenses. If you have any questions or would like advice, please contact our lawyers. To do this, you can call the numbers listed on the website or fill out the feedback form.
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