Inherited an apartment or house: in which cases it must be declared

When submitting annual declarations, declarants often have questions about how to properly report inherited real estate, whether its value needs to be indicated, how to declare income in the form of inheritance, transactions, and submit notifications about significant changes in property status.

The "Judicial and Legal Newspaper" has compiled the main rules for declaring inherited real estate and explanations regarding the most common situations.

Inherited real estate in most cases must be declared. At the same time, the procedure for filling out certain sections of the declaration depends on whether the value of the inheritance was determined and whether the property is owned by the declarant at the end of the reporting period.

It is separately emphasized: objects for which re-registration of ownership rights by the heir is required are considered acquired only after the state registration of such rights.

If the inheritance is taxed at a zero rate, property valuation for tax purposes is not conducted. In other cases, the object of taxation is the appraised value of the inherited property determined in accordance with the law.

As a general rule, the declaration must reflect:

• the real estate object itself;
• income in the form of inheritance — if the property value is determined;
• the transaction on the basis of which ownership rights were acquired.

If the inheritance value was not determined

In the first example, the declarant inherited a house without conducting a monetary valuation.

In this case, in section 3 "Real Estate Objects" it is necessary to indicate information about the house if it remains owned at the end of the year. In the field regarding value, the mark "Not applicable" is selected.

At the same time, the sections "Income, including gifts" and "Expenses and transactions of the declarant" are not filled out, since the value of the inheritance is unknown.

It is also clarified: if the declarant is a subject required to submit a notification about significant changes in property status, such notification does not need to be submitted.

If the inheritance valuation is known

Another example concerns an inherited land plot valued at 400 thousand hryvnias.

In this case, the declarant must:

• reflect the land plot in section 3;
• indicate income in the form of inheritance in section 11;
• provide information about the acquisition of ownership rights in section 14.

The source of income in the declaration is indicated as the deceased person.

If the inheritance value exceeds 50 subsistence minimums, there is an obligation to submit a notification about significant changes in property status.

If the valuation was conducted after inheritance

It is also clarified the situation when real estate was inherited without valuation, but later the owner conducted it on their own initiative.

In this case, the declaration must reflect the value according to the latest monetary valuation in the section "Real Estate Objects".

At the same time, this does not create an obligation to additionally fill out sections about income or transactions and does not require submitting a notification about significant changes in property status, since at the time of inheritance the property value was not officially determined.

If the inherited property was sold in the same year

The procedure for declaring is separately explained if the real estate was inherited without valuation and then sold in the same reporting period.

In the example, the declarant inherited a house and a land plot, later conducted their valuation and sold the property for 1.5 million hryvnias.

In such a situation:

• income from the sale of real estate must be reflected in section 11;
• the purchase-sale agreement must be indicated in section 14.

At the same time, information about the inheritance as a transaction is not indicated, since at the time of inheritance the property value was not determined.

Also, the section "Real Estate Objects" is not filled out if at the end of the year the property was no longer owned by the declarant.

If the inheritance is not yet formalized

Separate clarifications concern joint ownership.

If one of the co-owners has died, but the heir has not yet formalized ownership rights, the declaration must indicate the previous composition of co-owners, including the deceased person.

For example, if the heir lives abroad and has not completed the inheritance formalization, the apartment continues to be reflected in section 3 of the declaration as joint ownership with indication of the deceased co-owner.

The same approach applies when the heir actually uses the dwelling but ownership rights are not yet registered. In this case, the declaration must additionally indicate the right to use the object.

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