Today we are going to “Save Taxes”. Everyone wants to save on property taxes right?
Proposition 58 Parent- Child Transfers
Sometimes parents want to transfer their home or property to their children or even from the children to the parents. You can be excluded from reassessment of your home since “Prop 13” and your taxes will not go up. The established Prop. 13 taxable values are not affected by the transfer.
The new owner’s taxes are calculated on the established Prop 13 vales, instead of the current market value when the property is acquired. This can save you thousands of dollars in taxes each year.
There is a limit of $1 million taxable value on transfers of non-principal residence property.
There is no dollar limitation on the original owner’s principal residence though.
Transfers between legal entities (i.e. corporations, partnerships that are owned by parents or children do not qualify.
If you have any real estate questions or want more information please give us a call.