The dissolution of a community of heirs — tax challenges and solutions

The dissolution of a community of heirs presents heirs with complex tax and legal challenges — particularly when real estate is included in the estate. Early planning and professional advice are crucial to avoid tax pitfalls and to enable a smooth transfer.

How does a community of heirs arise?

A community of heirs is created automatically when several people inherit together. As long as the division of the inheritance is not completed, the heirs manage the estate assets together. The division can be settled either by mutual agreement or — if there is disagreement — by an established procedure.

Real Estate Transfer Options

When it comes to real estate, there are three main options:

1. Sale of property — The proceeds are divided among the heirs.‍
2. Takeover by an heir — An heir takes over the property and financially compensates the co-heirs.‍
3. Continuation as a community of heirs — The property remains jointly owned by the heirs.

Tax Aspects of the Takeover

‍If an heir decides to take over a property, the transfer is usually tax-neutral. That means:

• It falls No real estate gains tax Because there is no sale under tax law (tax deferral)
• The acquiring heir follows in the tax “footsteps” of the community of heirs and assumes the original acquisition value and the holding period of the property.

Real Estate Gains Tax in Case of Subsequent Sale

‍If the heir later sells the property, the real estate gains tax is calculated on the basis of the original purchase value. A longer period of ownership can have positive tax effects, as many cantons reduce the tax burden if held for many years.

‍Financial compensation for co-heirs

‍If an heir takes over the property, he must usually pay off the other heirs. This payment is tax-free for recipients, but the receiving heir cannot claim it as acquisition costs.

‍Special Features of Mortgages

‍Existing mortgages can be taken over with the property. It is important to know:

• The mortgage takeover is not considered as a purchase price for tax purposes.
• An associated compensation payment also remains tax-neutral

Tax optimization strategies

‍In Order to Minimize Tax Burdens, the following measures are recommended:

• Early planning — Clear agreements between heirs avoid conflicts.
• Documentation of values — An exact calculation of the original and current property value is essential.
• Longer holding time — Anyone who delays sales for a few years can benefit from a lower tax.

‍Conclusion

‍The Takeover of a Property from a Community of Heirs Can tax-neutral Take place when it takes place as part of the division of the inheritance. Anyone who chooses this path should be aware of the tax consequences — especially with regard to subsequent sales. Well-founded advice helps you to make optimal use of financial and tax benefits.

‍Do you have any questions about your real estate inheritance? Or would you like to determine the value of a property?

‍The team of Immo Portfolio supports you with expertise and experience in the tax-optimised transfer of estate properties. Contact us for individual advice!