Inheritance tax – tax allowance – tax consultant – Hagen – Holzwickede – Kamen – Lünen
If an heir has cared for or provided maintenance to the deceased free of charge or for insufficient remuneration, an allowance of up to 20,000 euros can be taken into account for tax reduction purposes for inheritance tax – depending on the type, duration and extent of the assistance provided (see Section 13 (1) No. 9 ErbStG).
In contrast to previous administrative practice, the Federal Fiscal Court has ruled that this allowance is also eligible if persons or relatives are cared for to whom there is a legal obligation to provide maintenance (e.g. parents, spouses or life partners).
The tax authorities have announced that they intend to apply the new case law in all cases that have not yet been assessed with final effect.
(For further information & comments, please refer to our information letter 02/2018 under point 3.)