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)
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.
2023 NEW LAWS AFFECTING REAL ESTATE… Here is a summary of just a handful of the new 2023 laws impacting real estate….
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.
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.
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.
We discuss how to determine your new property tax bill under Proposition 19 family transfers: (“new” property tax basis) = ((Fair Market Value) – ((old property tax basis) + $1,000,000)) + (old property tax basis))! Explained in our article.
An increasing amount of buyers who won ‘bidding wars’ are backing out of their purchases, often (per the Seller) leaving the home in a less desirable position than when it was first listed and ‘red hot’, and opening the door to deposit disputes.
Preparing for a real estate mediation can be stressful, but a well prepared concise brief will not only help the mediator to understand your case, it will also help you to organize your thoughts and positions. Here, we discuss what makes a good mediation brief and some suggestions for the same. BACKGROUND Real estate disputes … Continue Reading
Lucas Real Estate
2901 West Coast Highway Suite 200 | Newport Beach | California | 92663-4023
info@lucas-real-estate.com | 949.478.1623 office | 949.613.7837 24-hour line | 888.667.6038 fax
Devin Lucas BRE No. 01912302 | Courtney Lucas BRE No. 02015514
Real Estate Agents, Real Estate Transactions & Real Estate Dispute Resolution | Devin Lucas, licensed Real Estate Attorney, Real Estate Broker, REALTOR® | Courtney Lucas, licensed CPA, Real Estate Salesperson, REALTOR®