The inheritance and gift tax is levied on lucrative transfers.
There are differences between communities in some aspects of inheritance tax.
Inheritance tax is paid after the death of a natural person. It also taxes, among other things, donations. Therefore, at first it may seem that it depends on events that largely do not depend on you, such as someone leaving you assets or rights.
In practice, however, you need to prepare for these situations in advance . On the one hand, the amount paid may depend on decisions made during your lifetime that affect people
cuba email list very close to you. On the other hand, the settlement of the estate is not free from certain complexities. In particular, you may need to spend some time analyzing the correct valuation.
Start of marked textSHARE IT! Are you worried about inheritance tax? Take note of its main points and anticipate the most important decisions you will have to make!End of marked text
What does inheritance tax cover?
In reality, its full name is inheritance and gift tax . The reason for this is that it aims to tax all lucrative (free) transfers. In these cases, someone receives something without making any consideration. Specifically, this tax applies to acquisitions by:
Inheritance, legacy or any other succession title.
Donation or any other free title inter vivos .
Life insurance in favor of persons other than the person who took it out .
How is inheritance tax calculated?
To find out how much you will have to pay for inheritance tax , you will have to perform several calculations and operations.
Calculation of the tax base
As with other taxes, the tax base measures the magnitude of the taxable event. In the case of successions, it involves adding up the value of all assets and subtracting the value of all debts and charges . The following are also deducted:
the expenses of the last illness, funeral and burial, to the extent justified, and
certain litigation expenses of common interest to all heirs.
At this stage, the processes of appraisal of assets and rights are of enormous importance . In general, the market value is usually applied , unless a higher value has been declared. However, its determination can be complex. In the case of real estate, it is usual to take a reference value obtained from the data of the land registry.
In any case, whenever there are businesses involved, it is important to have all the accounting figures very clear . In addition, it will be very useful to have solutions such as Sage 50 that allow decisions with tax implications to be made with a comprehensive vision.
With Sage 50 you will have the best comprehensive vision to control all areas of your business.
Calculation of the taxable base
The taxable base is the result of applying a series of reductions to the tax base . There are two types:
Autonomous .
State . These can be replaced by regional regulations or can coexist with them. This must be indicated in the regional regulations.
Although there are various types of reductions, those related to the relationship and age of the beneficiary (heir, legatee, etc.) stand out. Thus, an amount is subtracted which means that, for example, an inheritance from parents to young children is taxed less than one between unrelated persons.
In the case of businesses, there are state reductions of 95% for certain donations made during life . To do so, certain conditions must be met:
The donor must be over 75 years old and have a permanent total disability or severe disability .
Donees may be the spouse, descendants or adopted children . In addition, unless they die, they must maintain their participation for 10 years .
The donor may continue to serve on the board of directors, but must cease to perform management functions and may not be paid for such functions thereafter.
Full share
It is obtained by applying a scale to the taxable base . The one that can be approved by the autonomous community is usually progressive. Thus, those who have received more pay more.
Tax rate
It is calculated by multiplying the total amount by a set of multiplying coefficients that can also be approved by the autonomous communities. These depend on two factors:
The kinship group .
The amount of assets that the person who has received something free of charge already had and who, therefore, must declare for this tax.
The differences between autonomous communities
Not all autonomous communities with a common regime apply the tax in the same way. This is because the following aspects are within the competence of the autonomous communities :
Reductions in the tax base .
The tax rate .
Amounts and coefficients of pre-existing assets .
Deductions and bonuses on the quota . In any case, these are compatible with the state ones, which cannot be modified by them.
The inheritance and gift tax is levied on those acquisitions in which nothing has been given in return, such as inheritances or donations.
In practice, the autonomous communities regulate different mechanisms that can make, for example:
Less is paid when the inheritance or donation is small.
People with less pre-existing assets benefit from advantageous tax treatment.
Profitable transfers between close relatives, especially from parents to children, should be taxed at lower effective rates.
There are no significant tax benefits and, consequently, in some autonomous communities more is paid in inheritance and gift tax.
