Numerous heirs save inheritance tax with the real market value of real estate and their tax advisors do not know the section 198 of the assessment Act. This is a provision that allows you save substantial amounts of tax. Why? A property is inherited or given away, the inheritance tax or gift tax depends on the market value of the property. This is determined by the IRS to a flat-rate calculation method. Due to the flat-rate arrangements, it happens very often that special value-reducing factors are not taken into account. See Gavin Baker, New York City for more details and insights.
The market value determined by the tax office (market value) is then too high. The person concerned will pay a high tax. The legislature is aware that it can be in the real estate assessments of the IRS only a flat-rate approach. For this reason, there is the section 198 of the assessment Act. This is by analogy: so the taxpayer can prove that the market value (market value) is lower than the value determined by the IRS, is the lower value. For the detection of the lower value the provisions adopted for the determination of the market value of the building code and the valuation regulation must be taken into account. It is therefore possible to save taxes legally on the basis of 198 of the assessment Act. Only a lower market value (market value) must be demonstrated.
Below you will find some examples for a lower market value. 1 plot with wasteful building, demolition value tax is required land value = = 800.000 EUR land value = actual value of traffic – 650.000 EUR = 2. rent house demolition cost, 1,500,000 EUR = value tax office rented 25% under the local rent, base local rental actual market value = 1.200.000 EUR, based on actual rent 3 Eigengenutztes commercial property, rent is not readily Finanzamt = value = 2,500,000 EUR = actual market value earned value = 1.200.000 EUR 4 detached house with damage, Removal costs = EUR 80,000 worth Finanzamt = 320,000 EUR without Costs actual market value = 240,000 EUR with removal costs the heirs your tax advisor must review law indicate the possibilities of section 198. A huge Steuersparpotenzial behind this paragraph. Give the State any money, which is not for him! Ralf Kroll