For Prop 19 transfers, the BOE has adjusted the $1 million cap amount to $1,022,600, as required per inflation adjustments.
Category
Taxes and Property Taxes (Proposition 13, 60, 90, 58, 193 and Proposition 19)
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.
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….
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).
New Year, New Tax Laws Impacting Real Estate Sales – IRS Exclusion Amount For Gifts Raised To $12.06mm Per Person
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.
