Exceptional news (but don’t hold your breath just yet) – a bill has been introduced in the California Legislature to repeal the costly property tax increases imposed on property owners’ heirs by Proposition 19 (which causes, in most cases, a reassessment of real estate upon the death of the owner, no longer allowing for the long-standing parent-child exclusions)
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Can I Sell My House To My Child (Or Anyone) Below Fair Market Value? / Can I Do A Gift Of Equity?
Yes! Indeed, many owners elect to gift or partially gift their homes to their children now, for many reasons, including current favorable gift tax allowances / exemptions. A gift of equity is a remarkably easy way to allow your child to obtain a traditional loan without any down payment….
2023 IRS Taxable Gift Exclusion Amount Raised To $12,920,000 Per Person / Reportable Exclusion Raised to $17,000 Per Person – 2023 Is A Great Year To Gift Real Estate
Good news for those seeking to gift or inherit real estate in 2023, the IRS applicable taxable exclusion amount for gifts (the total amount exempted from gift and/or estate tax) is raised to$12,920,000 ($12.92mm) per person, or $25,840,000 ($25.84mm) for a married couple filing jointly.
Landlord-Tenant Refresher: The Implied Warranty of Habitability
People have all sorts of personal definitions of what is “habitable” when it comes to their rental home. No, tenants, the blinds being askew is not a breach of the warranty of habitability. Likewise, landlords, the lack of hot water is not ‘no big deal’ to be fixed sometime later in the week. For better or worse, California law is very clear when it comes to rental property habitability.
New Year, New Real Estate Laws – Legal Update From The California Association of REALTORS®
2023 NEW LAWS AFFECTING REAL ESTATE… Here is a summary of just a handful of the new 2023 laws impacting real estate….
California Temporarily Waives LLC Initial Filing Fees AND First Year’s $800 Minimum Tax – A Excellent Way to Hold Real Estate Just Got Even Better
Effective until June 30, 2023, California is waiving the traditional $70 filing fee to form a California Limited Liability Company, or “LLC.” Even better – The annual minimum $800 tax to the California Franchise Tax Board is also waived for the first year.
Credit Score Reporting Fees – And Thus The Potential Costs Of Mortgages – Are Going Up In 2023
The National Consumer Reporting Association indicated a ‘vast majority’ of mortgage lenders will incur price increases ranging from 10% to 400% beginning in 2023. While not assured, and up to each lender, most of these costs are likely to be passed on to borrowers, along with ever-increasing mortgage rates.
A Friendly Reminder To Pay Your California Property Taxes – First Installments Can Be Paid Until December 12, 2022, Second Installments By April 10, 2023.
Your California 2022-2023 Property Tax Bills have arrived! The first installments can be paid until December 12, 2022, second installments by April 10, 2023.
Understanding Capital Gains Taxes in Real Estate Sales and Using the IRS Section 121 Exclusion (aka the Homeowners Exemption or Homeowners Exclusion) Saving $250,000 or $500,000 of Taxable Gains
IRS Section 121 allows a reduction of potential capital gains taxes by $250,000 for single filers and $500,000 for married filing jointly filers when certain tests are met for the sale of your primary residence.
Proposition 19 Repeal Efforts Fall Short For November Ballot Initiative
Efforts to repeal Proposition 19’s costly Death Tax On Inherited Property have fallen short for the November ballot initiative. Over 402,000 signatures were obtained to repeal those provisions of Prop 19 which wiped out former Propositions 58 and 193 (those propositions allowed parents to transfer their ‘prop 13 basis’ or ‘proposition 13 basis’ to their children; now no longer due to Prop 19’s changes, thus causing a substantial ‘death tax’ on California inherited property).