Whether you plan on living in your home forever, or you are interested in real estate simply as an investment, knowledge about the tax implications and benefits is critical. Know how real estate tax laws impact you can save you thousands of dollars. Some of the more common tax situations are included below. These are just references and a qualified CPA should always be consulted.
This proposition eliminated and expanded some of the prior propositions noted below. Proposition 19 is a California amendment that imposes new limits on property tax benefits for inherited family property. Under Proposition 19, a child or children may keep the lower property tax base of the parent(s) ONLY if the property is the principal residence of the parent(s) and the child or children make it their principal residence within one year.
Property value reduced by $7000 a year. Find out how you can file for this exemption and lower your property tax base just a little….every little bit helps.
Pay no Capital Gains up to $500,000 every two years. This is one of the best ways to avoid paying capital gains tax that we know of.
How You Take Ownership is a very important decision…see our chart for the various ways you can take and hold title on real estate and what it means in terms of tax and ownership consequences.
Know the Tax Schedule
Defer capital gains taxes on income property
General Info on Property Tax in California
One time transfer of current property tax base for homebuyers over 55. This is the older law and replaced by proposition 19.
Reassessment Exclusion for Real Property Transfers: Between Parent and Child or Grandparent to Grandchild. This is the older law and replaced by proposition 19.