Can I acquire farmland to build a home and convert it into residential land?

I have received your question.

My father passed away seven years ago, and at that time, the land in his name was temporarily transferred to my mother's name. If I, as the child, were to acquire this land now, would it be considered a gift?

Or would it be considered an inheritance?

Currently, my mother and I live separately.

The land is actually farmland at the moment. Can I acquire this farmland to build a home and convert it into residential land?

If it is possible, would it be considered a gift of farmland, and would the gift tax be lower?

My response

Since this case involves a gift from your mother to you while she is still alive, you might want to consider options such as the inheritance tax settlement system.

No. 4103 Selection of Inheritance Tax Settlement System

Next, since the gifting of farmland and its conversion to residential land require permission from the Agricultural Commission, I recommend consulting with your local municipal Agricultural Commission first.

By the way, do you meet the requirements for farming?

If not, the process would involve meeting the farming requirements, obtaining permission under Article 3 of the Farmland Act to transfer the land, and then applying for conversion under Article 4 of the Farmland Act.

In this case, gift tax can be calculated based on the farmland value.

Even without farming requirements, you can proceed with a conversion under Article 5 of the Farmland Act, but gift tax will be applied as if it were residential land.

Also, since permission may not be granted in urbanization control areas or non-demarcated areas, I recommend consulting with the Agricultural Commission first.