Here, we will breakdown of some of the key purchase documents, disclosures, escrow and title documents that you should pay especially close attention to during the sale or purchase and keep long after for legal and tax purposes.
Category
Taxes and Property Taxes (Proposition 13, 60, 90, 58, 193 and Proposition 19)
Capital gains tax rates for 2024
This is a simple update on the Capital gains tax rates for 2024, particularly in the sale of real estate.
Navigating Property Tax Prorations and Post-Closing Bills in California Real Estate Sales (And a Recap On Property Taxes in California)
This article will explore the basics of California property taxes, how those are prorated in a sale, and the post-closing “Supplemental Property Tax” bills new owners often receive.
Exclusions From Property Tax Reassessments: Cotenants (aka Co-Tenants)
We have written extensively on Proposition 19 and its negative impacts on family property transfers and inheritance, especially in areas such as Newport Beach, coastal Orange County, the Bay Area and many other locations where property values have increased dramatically over the course of ownership especially multigenerational ownership. This article will explore another reassessment exclusion, … Continue Reading
Intra-Family Loans and the IRS Applicable Federal Rate
When it comes to family loans — the IRS Applicable Federal Rates are the minimum interest rate you should be charging a “borrower”.
Repeal the Death Tax Initiative: Petitions Now Available! (to repeal the death tax aspect of Prop 19)
Now available! The official Howard Jarvis Taxpayers Association legal petition to get the Repeal the Death Tax initiative on the November 2024 ballot is here!
California Property Tax Bills are Out! Check Your Mail For The 2023-2024 Bills!
Your California 2023-2024 Property Tax Bills have arrived! The first installments can be paid until December 11, 2023*, second installments by April 10, 2024. (Payments are technically due by December 10, 2023, but since that is a Sunday, it rolls to the next business day.)
Capital Gains Tax Rates for 2023
This is a simple update on the Capital gains tax rates for 2023, see below.
Proposition 19 Interplay With Inheritance and Portability (55 and Older Transfer) – A Way to Make BOTH Aspects of Prop 19 Work For You
As we have written on extensively, Proposition 19, new for 2021 (replacing older propositions 58, 193, 60 and 90), has two main components, portability and inheritance. (Review our many articles on Prop 19 starting here, link to main prop 19 page.)
These two aspects can be combined in some regards, and not combined in others.
For example, if you inherit a property and qualify for Prop 19, and therefore keep that property’s low (prop 13) tax basis, you CAN then sell that property when you are 55 or older and transfer that same low (prop 13) tax basis to a new property. More details below.
What Happens If I Cannot Meet the One Year Deadline to Move In and File the Claim for Homeowners’ Exemption or Claim for Reassessment Exclusion Under Prop 19?
The answer to this critical question is in FLUX. The official answer, detailed below, is that the one (1) year deadline is firm, with no exceptions. HOWEVER, as of April 1, 2022, the BOE has used its “Emergency Powers” to enact a common sense answer to this question (allowing additional time to file a claim for Homeowners Exemption, with caveats).
