For Prop 19 transfers, the BOE has adjusted the $1 million cap amount to $1,022,600, as required per inflation adjustments.
1031 Exchange aka the Like-Kind Exchange – An Overview and How To
A detailed article on the like-kind exchange aka the 1031 exchange, including requirements and discussions on use with personal residences, and interplay with the IRS section 121 exemptions. There may be no better tax incentive than the 1031 Exchange, available exclusively to real estate investors.
Trustees and Executors Beware: Proposition 19 Supplemental Property Tax Bills and Escape Property Tax Bills Are Coming Post Sale! Ensure to Account For These Bills Prior To Distributions.
Simply put, absent an exclusion, an inherited property is subject to reassessment as of date of death. If the property is sold to a third party prior to the Assessor being notified of the death (which is often the case), then the Estate will receive the supplemental assessment and any escape assessments from the date of death until the date they sell the property, often long after the property is sold.
Prop 19 Action Alert!: “Repeal the Death Tax” Bill Introduced in the Legislature (To Remove The Death Tax Increases Imposed by Proposition 19)
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)
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.
