Efforts to ‘reinstate 58’ and ‘repeal’ the inheritance tax portions of Proposition 19 are underway by the Howard Jarvis Taxpayer Association. Go to their website to learn more directly, request copies of the petition, donate, volunteer, etc.: https: www.HJTA.org/RepealTheDeathTax.
We at Lucas Real Estate are seeing firsthand the negative impacts of Proposition 19’s inheritance tax on children unable to afford the new property taxes on their parents’ home, and thus forced to sell. The $1 million limit is grossly insufficient for many California areas, especially in Newport Beach, Costa Mesa, Orange County the Bay Area and so on. Moreover, all rental property is now reassessed, leaving children who inherit rental properties no choice but to raise the rents or sell the property (with the new owner only likely to do the same).
We are excited to report that the Howard Jarvis Taxpayer Association is seeking to “Repeal the Death Tax Act” and reverse Proposition 19’s tax increase on property transferred between parents and children, and grandparents and grandchildren.
As you may recall from our other articles, Proposition 19 repealed important taxpayer protections that were in the state constitution. Proposition 58 (1986) enabled parents to transfer a home of any value and up to $1 million of assessed value of other property to their children without triggering reassessment and a sharply higher tax bill. Proposition 193 (1996) extended these same rules to transfers between grandparents and grandchildren if the children’s parents were deceased.
Per the Howard Jarvis Taxpayer Association, the “Repeal the Death Tax Act” will reinstate these important protections for California families. It also includes an adjustment for inflation, raising the $1 million limit to $2.4 million.
The Howard Jarvis Taxpayer Association urges all voters to sign the petition to Repeal the Death Tax for the following reasons:
Parents should be able to transfer property to their children WITHOUT triggering reassessment and a HUGE TAX INCREASE.
Voters were TRICKED INTO REMOVING that protection from state law when they passed Prop. 19 in November 2020.
The Repeal the Death Tax initiative will RESTORE this important taxpayer protection for California families.
FAMILIES benefit because the death of a parent won’t trigger an UNAFFORDABLE TAX HIKE.
RENTERS benefit because this measure stops sudden reassessment of family-owned apartment buildings, which could lead to higher rents or eviction if the landlord dies.
Go to their website to learn more directly, request copies of the petition, donate, volunteer, etc.: https: www.HJTA.org/RepealTheDeathTax.
– Devin Lucas
Author Devin R. Lucas is a Real Estate Attorney, Broker and REALTOR®, specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individual and investors in residential real estate.
Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in California intra family transfers using all aspects of Propositions 13, 58, 193, 60, 90 and new Proposition 19. Learn more about how Lucas Real Estate may help your family transfer by clicking here.
Questions? – Paid one-hour confidential legal consultations are conducted daily via Zoom and address virtually all questions, options, tax implications and strategies. (Book a consultation here.)
Lucas Real Estate
Real Estate Law | Real Estate Transactions | REALTORS®
lucas-real-estate.com | devin@lucas-real-estate.com | BRE No. 01912302
949.478.1623 office | 888.667.6038 fax
2901 West Coast Highway Suite 200
Newport Beach | California | 92663-4023
| Official Site | LinkedIn | Facebook | Yelp | Avvo | Twitter | Zillow |
—-Disclaimer —-
The content on this blog is for informational purposes only. Nothing on this blog should be construed to be legal advice, and you should not act or refrain from acting on the basis of any content on this blog without seeking appropriate legal advice regarding your particular situation, from an attorney licensed to practice law in your state. The content on this blog is not guaranteed to be correct, complete, or up to date. Devin R. Lucas’ office is in Newport Beach, California and is only licensed to practice law in California. Please be advised that Devin R. Lucas only provides legal services or advice pursuant to a written legal services agreement. The content on this blog is not intended to, and does not, create an attorney-client relationship between you and Devin R. Lucas, nor does our receipt of an email or other communication from you. Some jurisdictions may consider this site to constitute attorney advertising; accordingly, please be advised this is an advertisement.
IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that, to the extent this communication (or any attachment) addresses any tax matter, it was not written to be (and may not be) relied upon to (i) avoid tax-related penalties under the Internal Revenue Code, or (ii) promote, market or recommend to another party any transaction or matter addressed herein (or in any such attachment).
