Key Facts
• Inheritance real estate ownership period starts from the deceased’s purchase date.
• Selling after 5 years can reduce tax rates by half.
• “Inheritance Vacant House Special Exemption” allows up to 30 million yen deduction.
• Tax savings of up to 6 million yen possible with a 20.315% tax rate.
• Eligible properties must meet conditions, including construction before May 31, 1981.
• Properties must not have been used for business, rental, or residence after inheritance.
• Sale must occur within 3 years and by December 31, 2027.
• “Acquisition Cost Addition Special Exemption” applies to those who paid inheritance tax.
• Both exemptions require filing a tax return, even if taxable income is zero.
• Retain purchase contracts and receipts to qualify for exemptions.
Summary
Tax benefits for inherited real estate can significantly reduce financial burdens if utilized correctly. The “Inheritance Vacant House Special Exemption” offers up to 30 million yen in deductions, potentially saving up to 6 million yen in taxes. Properties must meet specific criteria, including construction date and usage restrictions. Additionally, the “Acquisition Cost Addition Special Exemption” allows inheritance tax to be included as a cost when calculating taxable income. Both exemptions require timely sales and proper documentation, with deadlines set for December 31, 2027. Taxpayers are advised to consult professionals and stay updated on legal changes to maximize benefits.
