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Especially due to inheritance tax in Japan being very high. It can sometimes be cheaper to abandon inheritances, than actually claim them. Even if you do claim
by Prickle 3y ago
Especially due to inheritance tax in Japan being very high. It can sometimes be cheaper to abandon inheritances, than actually claim them. Even if you do claim the inheritance, large expensive things like houses tend to be sold because the tax makes it unaffordable.
- SenHeng 3y agoThe amount one can inherit before having to even pay any tax is roughly 36m yen (pretend that it's USD360k equivalent). Considering that we're talking about properties in abandoned rural villages, there's nothing of value of inherit. People are abandoning their inheritance not because they can't pay for it, but because the hassle of inheriting a worthless property only to have to spend your own money trying to sell it for less than 0 doesn't make economic sense. It gets worse when said property belongs to some grand aunt/uncle you've never heard of and thus doesn't even have any sentimental value worth forking over for.
- Prickle 3y agoHuh, I thought it was 10% at 1,0000,0000 yen. 15% at 3,0000,0000 and 20% at 5,0000,0000 (and so on.) That was what I was told previously at least. But yea, the calculus is: Total taxable amount of inheritance tax - Basic inheritance tax exemption (¥30 million + ¥6 million x number of legal heirs) = Total taxable amount of inheritance for inheritance tax purposes