I know there was a lot going on this past election, and you probably don’t remember which propositions was which. Proposition 19 changed to the property tax rules.
There is some BAD NEWS.
The parent-child exclusion is now severely limited. What does that mean? To eliminate the legalese, I will explain it as simply as I can. You probably remember Prop 13, which made sure property taxes did not go up as fast as property values. Older properties have lower assessed values than actual values (thus lower property taxes). A property may have a current assessed value of $200,000 and a FMV of 2,000,000. Under Prop 19 the annual tax bill when property passes from parents to children can go from $2,400 to $24,000! Over 10 years, that’s $216,000! Its not a problem if the kids intend to sell the property immediately, but bad news for kids who want to hold on to the property. So, if you have property that has been in the family for a long time and want to keep it in the family you need to ACT NOW! If you want to protect the property, you will need everything done and recorded before February 11.
If you have property you want to keep in your family, CALL 866-452-9657 TODAY so we can set up a meeting to discuss your situation, we will be meeting by phone and zoom, and if I can help you, I will devise a plan for you and get started right away. Don’t worry if my office is not close, I am working remotely, and your signing will be set up so it is convenient for you.