Estate tax

[ann08]

Hi sisses, gaano po ba ka importante ito?


Recently kasi nag pa-plan kami na mag transfer ng title pero umabot almost ng 300k+ all in na.


Living parents, pero medyo old age na kaya nag decide na kung gusto ko daw itransfer okay lang pero its income syempre sa kanila parin mappunta, rental business.


mag invest ba muna or ipatransfer na ngayon?


Thanks po.

[huggykaye]

hhmmm, may iba ang ginagawa po binebenta na lang (parents selling the property to their child) instead of transfer lang, mas mababa po yata ang magiging computation ng sales tax instead of estate tax... ganito na din usapan namin instead na ipamana sa amin, ibebenta na lang...

[ann08]

Thanks sisses for the replies.

[/size]Hi sis. yung almost 300K is computation direct sa assessors office.. lahat na daw yun. Sabi naman nung lawyer hindi daw nagkakalayo ang deed of sale at donation pero nacompute nya at mas mababa dun sa assessors office kasi sila ata din nagcocompute nung sa lawyer?[size=78%]


Medyo mahirap pala mag decide maglabas ng ganung amount. :/

[phexchanger]

tama iyong suggestion ni sis purple_tips. if hindi naman gaanong kalakihan ang value ng property, i donate na lang sa inyo, mas mababa ang magiging tax. if malaki naman, i staggered donation. I donate nila ang iba sa inyo this year, and next year ang iba.

http://www.bir.gov.ph/index.php/tax-information/donor-s-tax.html

Mapapansin kasi sa table na kapag nsa 1M ang donation, 14K + 4% of the excess. Kapag above 1M na biglang 44K + 6% of excess and so on

[super bratinella]

Just want to confirm mga sisses , is this the same as the real estate property tax na binabayara yearly sa municipyo?

Just paid our real property tax last month for the year 2015..

[chicafabulosa]

Just want to confirm mga sisses , is this the same as the real estate property tax na binabayara yearly sa municipyo?

No sis this is different. Real Property tax is the yearly tax we pay for our property or they call it amilyar.

while the estate tax is the transfer tax.

Tp TS: you may want to consider doing the donation instead of the estate tax. this is what my mom does when she is transferring her properties to us. we learned it the hard way kasi when my died and we had to do the estate tax thing and my super laki ng difference compared to the donation na ginagawa ng mom ko now. it was taught to her by my hubby since mas malaki ang babayaran namin sakali na estate tax ulit gagawin namin sa properties ng mom ko.

hope this helps

[super bratinella]

^ok I see, yeah totally different. Thanks!

[ikaela]

Kung sa tingin niyo maiksi na lang buhay ng mga magulang niyo, ipatransfer niyo na ngayon na, wag na invest. Your options:

1. Leave the properties in their name, then just pay the approx. 20% estate tax upon death. If your parents have insurance, this is the best option because your parents retain full control of the asset and it will be seamlessly transferred to the heirs so long as the estate tax is paid. But that is if your parents have insurance.

2. Have your parents donate it to you now, then pay 15% donor's tax. Matrabaho, but malaking bagay na rin yung 5% lalo na kung high-value yung property. Kung maraming properties, simulan niyo na ngayon din, tapos isa-isahin niyo every year para magamit niyo yung 100k yearly tax exemption.

3. You as heirs can buy it from your parents, and the tax will be only 6% sales tax. But BIR is onto this -- dapat gamitin yung proper zonal/market value, and hindi pwede "presyong kapamilya". Tapos pwede imbestigahin din kayong mga anak kung may capacity nga ba talaga kayo to buy the property and hindi bigay lang ng magulang.

[aquacharly]

I will share my and my extended families' actual experiences with Death Taxes, Donation vs Sale & the taxes thereof.

Death taxes (para madali natin differentiate from other transfer taxes) amount to actually nearer 40percent.  The basis lies in the way the BIR valuates the properties. Kung icuento ko pa lahat ng twists and turns involved with taxes after death -- when every govt agency has its version of --   Hindi tayo matatapos dito.

For me, Donation is the better route to transfer properties.  Not due to costs but Eto ha,  tandaan nyo, hindi ko uulitin ito. Haha --  the BIR can not shake down the persons who receive a donation. Kahit na  ga-Malacanang namana.   
But kung transfer made through a Deed of Sale, 1 fine day --  kayang kaya ipitin ng BIR yung napa manahan. Discrepancy between declared income and value of assets owned. Patay kang bata ka.  I have a cousin who found himself in a laughable situation.  Tax deficiency of 12million for just 1 year,  eh in any 1 of past 3 years never sya lumampas ng 2mio earnings per year.  Ineffable!  Lol

It is best to transfer properties while alive ang givers.  But that takes guts. Really.
The givers must overcome their fear, if any, of being treated shabbily PAg makuha na sa kanila assets.  Takot sila to be on the begging end for their needs later on. Well, power resides nga naman in who controls assets. 
Then, mahirap I pantay pantay if the givers have more than 1 heir and more than 1 property.
But the advantage in giving before dying is -- sigurado ka yung gusto mong puntahan ng asset mo eh dun pupunta. Whether fair/unfair -- is irrelevant (they can give even to non-heirs.  Kaya may mga ma tsing na kab1tches. Hehe).
Atchaka, if you DONATE while alive kahit sobrang unequal legally ang distribution ng heirs -- what can they do?  Ignore you, at most.  Lol
 Pero kung Deed of Sale gawa mo, at may  anak/heir na dejado or swapang -- pag dead-do na giver, puede pa I-challenge in court the Deed of Sale -- again, based on the "buyer"-heir's capacity to buy nga  naman.  Nothing like money to tear families apart. 

So, TS ANN08 --   do it through a Deed of Donation.
While both  parents are/1 is still  alive -- ano ba namang hayan mo na sila makinabang sa pag collect at control ng  rentals?  For sure, you will let them continue to control the rentals (pero bayaran nila real estate taxes, maintenance costs etc... . Puede pag-usapan)9
Pay-up now.  You cannot escape taxes, like Death.   Postpone it, well the tax bill just gets bigger. San ka naka rinig ng taxes na bumaba? 
The govt entities find ways to always jack up assessments, and taxes.

Patagalin mo yan, you will pay a bigger Donation Tax or Deed of Sale Tax later on.  For sure.
As it is now na nga, marami na kusot with BIR sa taxes for property sales.  Dati, based on whichever is higher: actual vs zonal. Anak  ng hito -- they have their 3rd or own assessed value. Ineffable!