Website “Valor Econômico” reported that taxpayers have managed to reduce taxation on properties in donations and inheritances. The decision was taken by the Court of Justice of São Paulo (TJSP). Appellate judges have been determining, as a tax base for the estate and gift tax (ITCMD), the use of the selling price of the urban real estate tax (IPTU), which is normally lower than the market value.
In one recent decision, it was defined that the market value of the property or right on the date of opening the succession or of execution of the act or donation contract should be placed as the tax base. Establishing the possibility of modifying the selling price based on market studies.
The article added that, according to tax expert Camila Xavier, this month alone, over 140 cases were handed to the Court of Justice to discuss the responsibility for the amount used for IPTU purposes as the tax base for the ITCMD.
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Written by Marcos Ferreira, Content Assistant for Drummond Advisors