'Inheritance AI' Adds Small-Scale Residential Land Special Provision Simulation Feature - AI Determines Cases Where Inheritance Tax Can Be Reduced by Up to 80%

Mycat Inc. (Headquarters: Meguro-ku, Tokyo) is pleased to announce the addition of a simulation function for the special provision of small-scale residential land to its AI inheritance tax simulator service 'Inheritance AI' (https://souzoku-ai.xyz). What is the Special Provision for Small-Scale Residential Land? The special provision for small-scale residential land allows for an 80% reduction in the assessed value for up to 330 square meters of land that was inhabited by the deceased, provided certain requirements are met (Article 69-4 of the Act on Special Measures Concerning Taxation). For example, if this provision is applied to a residential property with an assessed value of 50 million yen, the value for inheritance tax calculation would become 10 million yen. For cases where real estate constitutes a large portion of inherited assets, the applicability of this provision significantly impacts the tax amount. Requirements for Applying the Provision and Difficulty of Determination: The requirements for applying the special provision for small-scale residential land are complex. For Spouses: Spouses can apply for the provision unconditionally. For Co-residing Relatives: Applicable if acquired by a relative who lived with the deceased until the time of inheritance and continues to reside there until the tax return deadline. For Non-Co-residing Relatives (the so-called 'Homeless Child Exception'): Applicable only if there is no spouse or co-residing heir, and the non-co-residing relative meets several conditions, such as not having resided in a house owned by themselves or their spouse within three years prior to the inheritance. Overview of the New Function: The newly added simulation function calculates the applicability and reduced valuation under the special provision for small-scale residential land by inputting the following information. Input Items: - Land area and assessed value - Relationship to the deceased (spouse, child, grandchild, etc.) - Heir's residency status (co-residing, non-co-residing) - For non-co-residing cases: Residency status in the past 3 years - Intended use after acquisition (continued residence, sale, etc.) Output Content: - Determination of provision applicability - Reduced assessed value if applicable - Estimated inheritance tax amount after provision application - Details of fulfillment of eligibility requirements According to National Tax Agency statistics, the inheritance tax liability rate reached a record high of 9.9%, with taxable income amounting to 21.6 trillion yen (Source: National Tax Agency, Reiwa 5 Inheritance Tax Filing Statistics). We recommend checking the applicability of special provisions in advance when preparing for inheritance, including real estate. *This service is not tax consultation under the Certified Public Tax Accountants Act. For specific application of provisions or filing procedures, please consult with a tax professional such as a certified public tax accountant. Company Overview: Company Name: Mycat Inc. Establishment: February 5, 2025. Location: 2-7-22 Mita, Meguro-ku, Tokyo. Business Content: Planning, development, and operation of AI-based services for small and medium-sized enterprises and individuals. Corporate Site: https://mycat.business. Inquiries: info@mycat.love