Traktori pihassa

Intergenerational transfer and taxation

From taxation point of view, intergenerational transfer involves many things to remember. The following checklists will get you started. For further information about matters you need to remember, check OP’s intergenerational transfer guide and contact the tax authorities.

Matters to be determined

  • The fair value of the property from estate/gift tax point of view. Taxation is based on the current value of the buildings and other property belonging to the farm. To determine the value of the buildings and movables, refer to the intergenerational transfer guide. You can also contact OP Home for further assistance.
  • Tax relief on gift tax. Tax relief on gift tax for a person taking over farm operations is significant. Therefore, it pays to plan the transfer at a farm carefully.
  • Tax relief on sales profit. The sales profit from a farm sold in connection with an intergenerational transfer is partly tax-exempt to the seller.
  • The effect of the form of the transfer on taxation. Intergenerational transfer can be conducted as a regular sale, sale below current price, gift-like sale or the giving of the farm as a gift. The selected method makes a difference in terms of whether you have to pay gift tax, for example.
  • Role of the successor’s siblings during intergenerational transfer.