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.
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.
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.
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.
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).
Good news for those seeking to gift or inherit real estate in 2022, the IRS applicable exclusion amount for gifts (the total amount exempted from gift and/or estate tax) is raised to $12,060,000 ($12.06mm) per person, or $24,120,000 ($24.12mm) for a married couple filing jointly.
Efforts to ‘reinstate 58’ and ‘repeal’ the inheritance tax portions of Proposition 19 are underway by the Howard Jarvis Taxpayer Association.
Many landlords may be entitled to relief assistance for tenant non-payment during the past covid crisis. Read on for information on how to apply.
Editorial Summary
California Proposition 19 is a massive property tax hike on the next generation of property owners. It wipes out the current Proposition 58 and Proposition 193 family transfer benefits, effective February 16, 2021. This is potentially the largest property tax increase in California history… but it will only impact the next generations; this is a new death tax and inheritance tax on real property owners’ heirs.
What is my new property tax if I move under the Proposition 19 portability feature?
Proposition 19, new for 2021, has two main components, portability and inheritance. This article will focus on the portability aspects.
Lucas Real Estate
2901 West Coast Highway Suite 200 | Newport Beach | California | 92663-4023
[email protected] | 949.478.1623 office
Devin Lucas BRE No. 01912302 | Courtney Lucas BRE No. 02015514
Lucas Real Estate, a dynamic full-service residential real estate team led by Devin Lucas, REALTOR®, Real Estate Broker, and Real Estate Attorney, and Courtney Lucas, REALTOR® and CPA, offers unparalleled expertise in Newport Beach and surrounding areas.
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