The look-back for adding lifetime gifts under calendar-year taxation is extended in stages from 3 years to 7 yearsMoney you received shortly before someone died is counted again, looking back in time
If a person who acquired property through inheritance or bequest had received gifts from the decedent before the inheritance began under calendar-year taxation, those gifts are added back to the inherited property. The period covered by this add-back is extended from 3 years to 7 years. The extension starts with gifts made on or after January 1, 2024 (Reiwa 6), and the covered period differs depending on the date inheritance begins.
- On or before December 31, 2026 (Reiwa 8)Gifts within 3 years before inheritance begins are added back
- January 1, 2027 (Reiwa 9) to December 31, 2030 (Reiwa 12)Gifts from January 1, 2024 (Reiwa 6) to the date inheritance begins are added back
- On or after January 1, 2031 (Reiwa 13)Gifts within 7 years before inheritance begins are added back
Key points
- Inheritance begins on or before December 31, 2026 (Reiwa 8): gifts made within 3 years before inheritance begins are added back
- Inheritance begins from January 1, 2027 (Reiwa 9) to December 31, 2030 (Reiwa 12): gifts made from January 1, 2024 (Reiwa 6) up to the date inheritance begins are added back
- Inheritance begins on or after January 1, 2031 (Reiwa 13): gifts made within 7 years before inheritance begins are added back
- For gifts in the extended period (over 3 years up to 7 years), the amount added is the total less JPY 1,000,000
- Gift tax paid on the added-back gifts is credited against the inheritance tax
What to do in practice
- Organize records of when, to whom, and how much you gave (gift contracts, bankbooks)
- For each expected timing of inheritance, check the range of gifts that would be added back
Gift money you received a little before a person died is counted again at inheritance time as "originally the dead person's property." This "length of looking back" will grow little by little from 3 years to 7 years.
Points
- Until now, what was received in the 3 years before the death is counted again
- From now on, it grows little by little, up to 7 years before the death
- For the 4 extra years, JPY 1,000,000 of the total does not need to be counted again
What the words mean
- Lifetime gift (seizen zoyo)
- Giving property away while you are still alive
- Add-back (mochimodoshi)
- Adding what was given earlier to the dead person's property and counting it again
- National Tax Agency (NTA): NTA No.4161 Adding gifted property and tax credit (calendar-year taxation)
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.