Assets: How to keep the family home and garden plot exempt from inheritance tax
From the Handelsblatt archive: Anyone who moves into an inherited family home does not have to pay inheritance tax. The Federal Fiscal Court (BFH) interprets this benefit generously and also includes a large garden - under one condition.
A recent judgment by the Bundesfinanzhof (BFH) in Germany allows for a larger portion of an inherited family home to be exempt from inheritance tax. The court ruled that the term "built-up plot of land" includes all areas that are considered an economic unit by the local tax office, not just the land on which the house stands. This means that a garden or other adjacent land can be included in the tax exemption if it is used as part of the family home and the local tax office recognizes it as an economic unit.
To take advantage of this ruling, heirs may need to alter the physical appearance of the land to demonstrate its unity, rather than changing the land registry entry.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
