California Senate Bill 989 defers property taxes for taxpayers claiming Proposition 19 base year value transfers when the county assessor has not completed its determination of the property’s eligibility for property tax relief under that section. Additionally, the property tax bill must contain information regarding Proposition 19 base year value transfers and potential tax deferment in large counties.
The Howard Jarvis Taxpayers Association will go forward with an initiative to restore the right of parents to transfer their home and limited other property to their children without reassessment to market value.
For Prop 19 transfers, the BOE has adjusted the $1 million cap amount to $1,022,600, as required per inflation adjustments.
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.
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.
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)
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.
2023 NEW LAWS AFFECTING REAL ESTATE… Here is a summary of just a handful of the new 2023 laws impacting real estate….
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.
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).
Lucas Real Estate
2901 West Coast Highway Suite 200 | Newport Beach | California | 92663-4023
info@lucas-real-estate.com | 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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