California property taxes, and Prop 13

Image : http://www.flickr.com

If someone inherits a house on one, trusts, gift or intestate, is not necessarily true that the value of the house is revalued for tax purposes. This may be particularly important for a beneficiary who is a house of his parents or grandparents, as she had probably inherited a low base year value of their home. For example, when the receiver Bobby a house that is currently estimated at 1 million U.S. dollars, was inherited from his late parents had bought the house for $ 50,000decades ago, was not required to pay property taxes for the estimated value of $ 1,000,000 dollars, but $ 50,000, plus annual adjustments. (See Example 4).

It should be noted, Proposition 13 caps the collection rate for property tax to 1% in California. Cal Const art XIII, 1

The following are examples of situations in which the transfer is not a "change of ownership" will result, thus avoiding the dreaded property revaluation for tax purposes.

1. Transfersproportional interests remain the same before and after the transfer

For example, a husband and wife owners of a house in joint tenancy rent (50/50 split) and transfer them to a limited liability company in which they have the same interest in membership (50/50). Rev & TC 62 (a).

2. Transfers to revocable trust

For example, men and women to lead a revocable (living) trust and the transfer of 'apartment where the living trust by transferring the title itself, the confidencethrough the appointment of the administrators of their revocable trust as the owner. Rev & TC 62 (d).

3. Interspousal Transfers

For example, a husband and wife own their home in joint tenancy dies, husband and wife inherits the other half of the house. Rev & TC 63rd

4. Parent-child (or grandparents and grandchildren) moved

For example, in the case of a father-son transmission, husband and wife own a home and have a son, son. Husband and wife go by and the son inherits the house. Moreover, ifgrandparents and grandchildren is a forward, grandparents only by a grandson, that no child, the grandparents are survivors of grandparents are survivors. Rev & TC 62nd

5. People over 55 or a severe and permanent disability, the value of the reference of a residence permit for a replacement transfer house in the same community, or in another municipality, if the supervisory board of the region, the adoption of a decree granting the base year value to facilitate alternative accommodation if the house was originallylocated in another district

As I write this, seven counties (Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura) Regulation laying down rules for the base year value to facilitate alternative housing if the original house was located in another Rev & TC district for 68 to 69.5. For example, a person buys a house in San Jose (Santa Clara County) and the achievement of 55 years has sold their home in San Jose for the purchase of a house in Redwood City (San Mateo County), socloser to their family.

Visit : Proposition 8 jessica seinfeld