--- title: "Sale of Inherited Commercial Real Estate by an Individual Entrepreneur: How to Determine the Tax Treatment" country: KZ lang: en author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti) date: 2026-10-13 canonical: https://buhgpt.kz/suraqtar/prodazha-unasledovannoy-kommercheskoy-nedvizhimosti-ip-ka-en source: BuhGPT --- # Sale of Inherited Commercial Real Estate by an Individual Entrepreneur: How to Determine the Tax Treatment > **TL;DR:** Why Individual Entrepreneur Status Alone Does Not Determine the Tax Treatment An individual applying the special tax regime based on a simplified declaration has inherited a share in commercial real estate and plans to sell the property after registering ownership. In this sit --- Why Individual Entrepreneur Status Alone Does Not Determine the Tax Treatment An individual applying the special tax regime based on a simplified declaration has inherited a share in commercial real estate and plans to sell the property after registering ownership. In this situation, the proceeds from the sale cannot automatically be classified as the individual entrepreneur's income merely because the seller is registered as an entrepreneur. For taxation purposes, it is important to establish the capacity in which the owner is acting: whether they are selling personal property as an individual or disposing of an asset used in entrepreneurial activities. This may affect the scope of tax obligations, the procedure for calculating income, and how the transaction is reported. The subject matter of the transaction is also relevant. It is necessary to clarify whether only the inherited share or the entire property jointly with the other owners is being sold. In the case of common shared ownership, the documents must show the size of the specific seller's share. Justice authorities provide the tax authorities with information on the type of ownership, the share in the property, the title document, and the date of registration of the right. What Circumstances Need to Be Checked Before concluding the transaction, the documents should be collected and the actual nature of the property's use determined. The following are important for the analysis: - the certificate of inheritance and state registration documents; - the size of the inherited share; - the intended purpose of the property and its actual use; - the presence of tenants and rental income received; - whether the property or related expenses were recorded in the individual entrepreneur's accounts; - the composition of the sellers if the entire property is being disposed of; - the price attributable specifically to the entrepreneur's share; - the connection between the transaction and the individual entrepreneur's ordinary business activities. Particular attention is required if, after acceptance of the inheritance, the property was leased out, used in the entrepreneur's activities, or recorded as a business asset. These circumstances must be assessed based on documents, not merely on the wording of the sale agreement. The commercial designation of the premises alone is also insufficient for a definitive conclusion. The classification of the transaction depends on the totality of the circumstances: the basis of acquisition, the manner of use, the accounting treatment of the property, and the substance of the transaction. How to Prepare the Sale and Account for the Transaction First, register the ownership right and the share in accordance with the established procedure. Then determine whether the planned sale relates to the individual entrepreneur's activities. Before signing the agreement, it is advisable to obtain written advice from a specialist, taking into account the provisions of Kazakhstan's tax legislation in effect on the sale date. The agreement should clearly specify the property, cadastral details, the size of the share being disposed of, the price, and the seller. If the owners jointly sell the entire property, the amounts due to each of them must be separated. Settlements should preferably be made in a manner that makes it possible to confirm the movement of funds and their attribution to the specific seller. The accountant should not include the full value of the property in the income of one individual entrepreneur if that person owns only a share. At the same time, the proceeds must not be excluded from the business accounts without analyzing whether the property was used in the business. Practical course of action: - Verify the title documents and the registered share. - Document how the property was used after it was inherited. - Separate the individual's personal transactions from the individual entrepreneur's transactions. - Determine the transaction's tax treatment under the rules in effect on the sale date. - Calculate the obligations only after confirming the classification of the income. - Retain the agreement, payment documents, and calculation showing the allocation of proceeds among the owners. The source information does not specify particular rates, reporting forms, or deadlines. They must be checked immediately before the transaction because incorrect classification of the sale may affect both the tax calculation and the entrepreneur's reporting. Frequently Asked Questions Should the sale be treated as income under the simplified declaration solely because of individual entrepreneur status? — No, individual entrepreneur status alone is insufficient. It must be determined whether the property and its sale are connected with entrepreneurial activities. Does it matter that the real estate was inherited? — Yes. The basis of acquisition is one of the circumstances that must be supported by documents when determining the tax treatment. What should be considered if only a share is being sold? — The documents must specify the size of the share and the price attributable to it. An owner's income cannot be determined based on the full value of the entire property without appropriate grounds. Does leasing out the premises affect the tax analysis? — The actual use of the property is important. The lease agreements, receipts, and how they were reflected in the accounts and reporting must be checked. When is the best time to determine the tax consequences? — Before signing the agreement and receiving payment, using the inheritance documents, registration of title, use of the property, and terms of sale. Sources - 1C:ITS Kazakhstan guidance on the sale of an inherited share in commercial real estate - Rules for Submitting Information on Real Estate Properties and Their Owners --- _BuhGPT — ИИ-помощник для бухгалтеров Казахстана: https://buhgpt.kz_