How to give the parents real estate to their children, and how to give the most cost effective real

The parents' house is transferred to the children, the inheritance is the most cost-effective, the real estate certificate is more than 2 years old, and the gift is cost-effective. If the property ownership certificate is 5 years old and it is the only property, the purchase and sale is the most cost-effective.

There are generally three ways for parents to transfer ownership to their children:

1. Transfer. Parents can transfer the house to their children by way of transfer, and the costs incurred in this way are business tax, personal income tax and deed tax. Among them, the business tax is exempted for five years, and the individual income tax is also exempted, and only the deed tax and property transfer registration fee need to be paid, and if the property is less than five years, the business tax and individual income tax need to be paid, and the deed tax and property right transfer registration fee are paid at the same time.

2. Gift. Parents can also choose to transfer the house to their children by way of gift, and if the transfer is handled, they need to pay personal income tax, deed tax and notary fees. There is no business tax on the transfer of gifts, because gifts are considered to be free gifts, so the donee is required to pay personal income tax, and at the same time, the gift transfer also needs to pay notary fees.

3. Inheritance. Parents can also choose to transfer the house to their children by inheritance, and the tax expenses of inheritance transfer are the lowest compared to sales and gifts, because there is no business tax, individual income tax and deed tax on the inherited property, and only notary fees need to be paid. The heir only needs to notarize the inheritance right with the will, and then go to the housing management department to handle the transfer and change of name with the notarial certificate of inheritance.

Three ways to compare:

1. The way of gift is relatively simple and convenient compared with inheritance and transfer, and the gift between immediate family members only needs to pay stamp duty and deed tax, and the cost is not much, if you are considering leaving the property for your own residence or rent, you can use this method. However, if you have the intention of buying a house in the future, this method is not very suitable, because the donated property will incur 20% personal income tax at the time of transaction.

2. The way of transfer is relatively straightforward compared to inheritance and gift, there is no lot of trouble to deal with, and there is no need to bargain for real estate transactions between immediate family members, and only need to pay personal income tax, deed tax and business tax according to the assessed value of the local tax, and the cost is not much. In addition, if the house has been purchased for more than five years, the business tax and individual income tax can also be exempted, and the 20% personal income tax will no longer be generated in the future transaction through the transfer of the property.

3. Inheritance is the most economical and fast way compared to assignment and gift, because China has not yet levied inheritance tax, and only needs to pay notary fees for inheritance transfer, and other taxes and fees will be exempted, so it is very cost-effective. However, it should be noted that the handling of inheriting a house will be troublesome after the death of the parents, and 20% personal income tax will be incurred in future transactions, so it is generally not adopted.

The transfer of the parents' house to the children is the most cost-effective. It's easy and convenient, and the cost is not very high, so it's worth considering. Especially in the context of purchase restrictions, some outsiders or foreigners who are not qualified to buy houses can complete the transfer of ownership through this way.

However, this method is only suitable for considering keeping the property for personal use or long-term rental, and in the future, this method is not very suitable, and the high taxes and fees required in the future will be a big burden.

The People's Republic of China's Civil Service Imperial Code

Article 657.

A gift contract is a contract in which the donor gives his property to the donee free of charge, and the donee expresses his acceptance of the gift. Article 658.

The donor may revoke the gift before the transfer of rights to the donated property.

The provisions of the preceding paragraph do not apply to notarized gift contracts or gift contracts that have the nature of public interest or moral obligations such as disaster relief, poverty alleviation, or assistance to the disabled, which must not be revoked in accordance with law. Article 660.

If the donor does not deliver the donated property, the donee may request delivery of a notarized gift contract or a gift contract with the nature of public welfare or moral obligations such as disaster relief, poverty alleviation, and assistance to the disabled, which cannot be revoked in accordance with law.

Where the donated property that shall be delivered in accordance with the provisions of the preceding paragraph is damaged or lost due to the donor's intentional or gross negligence, the donor shall be liable for compensation.

1. The transfer of real estate within five years is more cost-effective: according to the national policy, parents donating real estate to their children are exempt from business tax and personal income tax, and only pay the notary fee and deed tax accounting for 2% of the total price of the house.

2. Inheritance and transfer are the most cost-effective: Brother Qing in the sale, gift, inheritance of the three transfer methods, inheritance is the most economical and fast way to accompany the dust, because China has not yet levied inheritance tax, inheritance transfer only need to pay notary fees, other taxes and fees are exempt.

3. More than five years of real estate purchase and transfer is more cost-effective: according to the national policy, if the real estate has been purchased for more than five years, it is exempt from business tax and personal income tax, and only needs to pay deed tax, which is less than the gift transfer to pay a fair fee.

The more cost-effective ways for parents to give their children property are as follows:

1. Direct gift: Parents can donate real estate to their children, and the amount of the gift is tax-free when it does not exceed 200,000 yuan. However, if it exceeds 200,000 yuan, you need to pay gift tax;

2. Purchase discount: If the property of the parents is still within the loan period, the children can choose to obtain the property by purchase. At this time, the children can enjoy the preferential policies of the parents when purchasing, such as a lower down payment ratio and a lower loan interest rate;

3. Entrustment**: Parents can entrust their children to manage the property, and the children can easily dispose of the property when their parents are healthy or unable to take care of themselves. At this time, it is necessary to indicate the person who manages the ** on the real estate certificate;

4. Transfer of part of the property rights: Parents can transfer part of the property rights to their children, such as transferring 70% of the property rights to their children, which can avoid the transaction of a large number of funds, and can also avoid tax problems.

Parents giving property to their children usually need to meet the following conditions:

1. Parents have legal property rights, that is, parents are the legal owners of the house;

2. Parents have no other legal heirs or other rights holders, such as spouses, other children, creditors, etc.;

3. Parents voluntarily donate real estate to their children, and there is no improper situation such as coercion or fraud;

4. The child agrees to accept the gift and has the legal ability to accept it;

5. Parents and children must go through the relevant real estate transfer procedures in accordance with the law, including the transfer of real estate certificates, land certificates and other warrants.

To sum up, when choosing a transfer method, in addition to considering economic interests, you should also consider factors such as taxation and legal risks, and it is recommended to consult a professional lawyer or tax authority before transferring.

Legal basis]:

Article 1123 of the Civil Code of the People's Republic of China.

After the commencement of inheritance, it shall be handled in accordance with the statutory inheritance; If there is a will, it shall be handled in accordance with the testamentary inheritance or bequest; Where there is a bequest and maintenance agreement, it shall be handled in accordance with the agreement.

Article 1127.

The estate is inherited in the following order:

1) First order: spouse, children, parents;

2) Second order: siblings, grandparents, maternal grandparents. After the inheritance begins, it is inherited by the first-order heirs, and the second-order heirs do not inherit;

If there is no first-order heir, the second-order heir shall inherit. For the purposes of this Part, the term "children" includes legitimate children, children born out of wedlock, adopted children and dependent stepchildren. For the purposes of this Part, the term "parents" includes biological parents, adoptive parents and step-parents in a dependent relationship.

The term "siblings" as used in this Part includes siblings of the same parents, half-siblings or half-siblings, adoptive siblings, and step-siblings who have a dependent relationship.

Legal analysis: It is more cost-effective to use the gift method, no notarization is required, and the cost to be borne is not very high. Real estate gift refers to the act of one party voluntarily giving his private property to the other party for free, and the other party is willing to accept it.

This behavior generally occurs between relatives or friends. In addition to his spouse and children, other relatives can not adopt the method of inheritance, and can only choose to donate or buy and sell trembling limbs.

Legal basis: Article 657 of the Civil Code A gift contract is a contract in which the donor gives his property to the donee free of charge, and the donee expresses his acceptance of the gift. Article 659 Where it is necessary to go through registration or other formalities in accordance with the law for donated property, the relevant formalities shall be completed.