Following the death of a family member, it is important to enable heirs to divide the assets. In cases where there is a property to be inherited, the successors have to decide between keeping it – for example, for rent and sharing the rent – or opting for sell the inherited property.In this article, we have gathered the main steps to take so that you can effectively move forward with your decision to sell the inherited property.
Acceptance or repudiation of inheritance
The next step is, inevitably, the acceptance or repudiation of the inheritance. This is because by agreeing to receive the inheritance, you are legally obliged to assume the debts of the deceased. Thus, if their value is greater than the amount corresponding to the inheritance, the best thing would be to repudiate them and avoid bigger problems. On the other hand, when accept the inheritance, many other issues arise that must be discussed and resolved among the heirs as soon as possible. Read also: Assets and debts: Know what to do in case of inheritance
Qualification of Heirs
After the death, the heirs have up to three months to communicate the same to the Finances, under penalty of fines being imposed. The qualification of heirs, although not mandatory, is highly advisable and essential for the sale of an inherited property. This is a legal process that identifies heirs and their rightsas well as the assets that will be divided between them: real estate, money, bank accounts, investments, etc. In this procedure, a head of the couple is defined who will be responsible for the Qualification of Heirs. This figure is occupied by the widower or, in the absence of one, by the child who has lived the longest with the deceased (or the eldest, if there is temporal equality).
Set the destination of the inherited property
Once the procedure for qualifying heirs is completed, if there is any property to inherit, it is essential that make a decision as to its fate. Thus, two main hypotheses arise:Rent the house and share the rental value; Sell the inherited property and divide the obtained value. If the second option prevails, it will be necessary to take into account some mandatory procedures that arise from the sale of a property:
Calculation of capital gains on the property
When proceeding with the sale of an inherited property, you will have to calculate the capital gains. capital gains refer to profit obtained from the sale of the property, that is, the difference between the value for which it was sold and the price paid for the acquisition of the same. If you have a loss in this process, this difference is called a capital loss. On the other hand, as mentioned, if you make a profit, then we are talking about capital gains. These are calculated as follows:Gains = sale value (purchase value x currency devaluation coefficient) – purchase and sale charges (charges with property appreciation in the last 5 years)
Declare the sale of the inherited property to the IRS
After this calculation, it is mandatory declare capital gains to the IRS. This procedure is subject to taxation and in the case of capital gains relating to the sale of real estate, the rate is 50% of its value. However, if you invest the profit obtained, for example, through the acquisition of another property in the following 36 months, you are exempt from taxation. This exemption extends to properties inherited before 1989 and building land acquired before June 9, 1965, even in cases where there is no profit. However, in both situations, remains subject to the declaration of capital gains to finance.Read also: Qualification of heirs, how to do it? Know that you can reject the inheritance
When one of the heirs does not want to sell the property
One of the biggest challenges for the sale of inherited property happens when the heirs are not in agreement as to the destination of the property. That is, one of the beneficiaries opposes the sale and creates an impasse that makes the sale more difficult. However, this divergence can make the sale process more complicated and costly, but not impossible. The heir interested in proceeding with the sale of the property may go to court to resolve the conflict.
Forced sale of indivisible goods
First, you must inform all successors of your intention to sell the property. O heir who is against the sale can buy the share of the remaining heirs and the situation is resolved. If this is not the case, it will be up to a judge to order the forced sale of indivisible goods, through an appraisal of the property to later be put up for sale at auction. O amount raised will be divided among the heirs.
bet on dialogue
Even so, this alternative tends to lower the value of the property compared to a “normal” sale, so the ideal solution will always be resolve any disagreements through dialogue and avoid legal action.Read also: AIMI in undivided inheritances: How to reduce or avoid paying this tax
A professional writer by day, a tech-nerd by night, with a love for all things money.