Thank you for visiting us.
This is conspi public relations.

This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.Episode 46: Boost your quality of life with real estate management!I would like to send you the contents.

This time, I would like to give an overview of the "high-rise apartment tax savings" ruled on by the Supreme Court in 2022.

High-rise apartment tax savings are "inheritance tax measures"

I'm sure you've all heard the term "tower apartment tax savings" at least once.
Strictly speaking, this is called "inheritance tax avoidance."

First of all, why do high-rise condominiums help you save on taxes? In the case of inheritance, the value of the deceased's inherited assets is determined according to valuation standards set by the National Tax Agency.

This is called the "inheritance tax assessment value."
In other words, the inheritance tax assessment amount is the basis for calculating the amount of inheritance tax, so if it is high, the amount of tax paid will also be high, and if it is low, the amount of tax paid will also be low.

One way to lower this assessed value is to "purchase a tower apartment."

Benefits of inheritance tax measures using high-rise apartment tax savings

For the calculation of inheritance tax, cash is assessed at its current value, while stocks are assessed at their current market value.
In contrast, for real estate, the roadside value method is used rather than market value, so the inheritance tax assessment value is estimated to be significantly lower than the market value.

Taking advantage of this difference is a way to avoid inheritance tax using real estate.

Furthermore, the biggest reason why they are called "tower condominiums" is that there is a large discrepancy between the purchase price and the inheritance tax assessed value.

As we all know, high-rise condominiums have good locations, are of high quality, and have high market values.
In contrast, when it comes to inheritance tax assessment, since it is merely the ownership of one room in a tower apartment, all owners have ownership in the form of their "share."

Furthermore, since there are a large number of units compared to the size of the land, the "share" is also low, which means the inheritance tax assessment value can be significantly reduced.

In addition, when it comes to inheritance tax assessment, there is not much difference in the valuation between low and high floors (since 2018, the rules have been revised to add an adjustment rate depending on the floor), but when it comes to actual market price, there is a large difference in the current market value, making the discrepancy between the current market value and the inheritance tax assessment amount even larger.

Examples of tax savings for high-rise apartments

To give a somewhat simplified example, if you have 100 million yen in cash, the inheritance tax assessment value will simply be 100 million yen.

To make it easier to understand, we will calculate this without taking into account other assets or basic deductions, so the inheritance tax amount for 100 million yen in cash will be roughly 23 million yen.

On the other hand, let's say you use this money to purchase a high-rise condominium.

Assuming that the inheritance tax assessment value is about 30% of the current market value, a 100 million yen high-rise condominium would be valued at 30 million yen, and the inheritance tax amount would be 4 million yen.

This time we have not gone into the issue of whether the property is for personal residence or rented out, but in any case, there is a large discrepancy between the current market value and the assessed value, and I hope you can see how this can be used to reduce inheritance tax.

Now, regarding this high-rise condominium tax saving, the Supreme Court handed down a ruling in April of this year, Reiwa 4.
I will discuss the details of this precedent and the future direction of tax savings on high-rise condominiums in the second part.

Learn about real estate management

If you likeConspirit official channelPlease also take a look.
Please subscribe to the channel and give us a high rating!
Well then, it was Conspi PR!