Is income from the sale of inherited land taxable: clarification from the State Tax Service
In the case of citizens selling a land plot received as inheritance, the income from such sale is not taxable under certain conditions defined by the norms of the Tax Code of Ukraine. This was reminded by the State Tax Service.
The agency emphasized that taxes are not paid if the sale is made no more than once during the calendar year and the area of the plot does not exceed the norms of free transfer established by land legislation.
At the same time, the requirement of owning the inherited land plot for more than three years does not apply. That is, it can be sold immediately after the ownership right is registered and if there are grounds to use the tax benefit.
The benefit applies to land plots:
- for personal farming – up to 2 hectares;
- for horticulture – up to 0.12 hectares;
- for individual summer house construction – up to 0.10 hectares;
- for household plots – within the limits defined by the Land Code of Ukraine.
The State Tax Service adds that if the area of the land plot exceeds the established norms or the object does not fall under the benefit, then income from the sale is taxed with personal income tax at a rate of 5% and military tax at a rate of 5%.
As previously reported by Sudovo-Yurydychna Hazeta, an heir whose right to inheritance arose due to the refusal to accept the inheritance by another heir has the right to refuse the inheritance within a special three-month period established by part two of article 1270 of the Civil Code of Ukraine, which is calculated from the moment of such refusal, and not within the general six-month period from the opening of the inheritance. This conclusion was made by the Supreme Court in the composition of the panel of judges of the First Judicial Chamber of the Cassation Civil Court.
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