Supporting "new comers" is going to require great increases in property taxes in all states. "New comers" are already demanding free housing at the city council meeting in Seattle Washington. They were so loud and disruptive that security was called to have them removed.
Listening to this makes me so glad I’m retired. I spent about 16 years explaining things like Prop 58, Prop 60 etc. But I can’t even imagine trying to explain Prop 19 over the phone!
Congratulations on retirement! We do our best to explain Prop-19 with videos, hour long consults, and written articles. It can sure be difficult since it is so complex. Here's a link to our website page: www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/
So, there were some advantages to being a lawyer and finance professor! I found the calculation rather easy; however, you now force me (age 78) to have the discussion with my two daughters. The form will nevertheless require checking with a real estate lawyer in Ventura County by my children when the last of us (wife and me) dies. The fact that you outlined the end-of-life options, assuming it is my wife (very likely, although she is only a little over 3 years younger). I am certainly asking my younger daughter to listen to this! (My older daughter will probably pass). :). THANK YOU & continue the good work. I taught only one class at Pep’s law school (accounting, finance & law) and taught as much finance as I did business law, but I never practiced law in California (Illinois, the worst state of all for taxes has a high income tax, high sales tax, and a high real estate tax, so, on a million dollar house (which would be a mansion in Southern Illinois, but about like mine in a subdivision of Chicago), I would pay (estimated) probably as much as two to three times as much as I do under our 1% tax on new purchase. Illinois also treats some other sources of retirement income, so staying in California has been an acceptable result of my children & grandchildren all living here. (Of course, if I could leave my loved ones, I would not have moved to Illinois (probably Missouri or Tennessee).
Excellent intel. Thanks for sharing! I followed the elimination of the parent to grandchild exclusion but not this sequel re: porting property tax base! Wow.
I'm guessing that since we lost our house in foreclosure in 2010, and are now buying another home, we are not eligible for the tax benefit? We're both over 65
I was once a tax lawyer (1978 or so, so now incompetent), however, something you said raised a question: Does California law or federal law not provide a step up in basis to date of date of decedent, because years ago (as a minister in CA then), I advised a family well into their 80s not to sell the property they had homesteader around 1910, it overlooked the ocean in Pacific Palisades (guy had been a rodeo rope trickster). Only in early CA, right! Do we still get step up in basis?
If property in included in a decedent’s gross estate, it typically receives an adjusted cost basis. For community property, the full value of community property that is owned by the deceased spouse is includable in the deceased spouse’s estate. So, yes, property held as community property can receive an adjusted cost basis… provided it was included in a decedent’s gross estate.
I love prop 13, which actually reduce property tax for Californians. Since that time bond issue after body if she was increase the tax rate going around about wonderful proposition 13.
Prop 13 was to really to keep taxes low for the super rich and corporations. Sure home owners got some benefits out of it. But the mega corporations and super rich benefit the most and use the most in resources. One the co-writers of the bill. Confession he never saw how the large corporations in california were benefiting and most out of it.
On Prop 19. Most homebuyers in California in the 50 60 70’s were middle-class. Many of the migrants and lower income had to rent now the children of those migrants and low income are in power in Sacramento and are getting back at those middle class. I gotta say you’re winning. You’re pushing us out of California. Winner, winner, chicken dinner. this is just my opinion.
Prop. 13 held property taxes down for the mostly White homeowners. Now the recent buyers and voters are mostly non-white and this unjust property tax system needs to be fixed. I left CA because I was paying 5x more taxes than most of my neighbors. Property taxes pay for city services and since everyone gets the same service there should be no disparity.
loved your video. one item. my late mother specialized early in her carrier in wills, estates, and trusts. so for herself she move her California property into her trust.
I'm glad you loved the video! In the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome. If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2. Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice.
Should the parent reside in the same home with the child so that the parent can transfer the primary resident home to the child in an event when the parent dies? How should the parent prove to be the primary resident for the home? Does the parents' address on the tax report form prove enough to prove as their primary resident? Can we avoid the reassessment in the event when the parent dies?
Not necessarily. The child doesn’t have to live with the parent, but certainly can (this is different than the Co-Tenancy Exclusion discussed in the video at 30:33). Item 2 on the BOE-19-P form asks “Was this property the transferor’s principal residence?” and the answer is either yes or no. If yes, it asks “…which of the following exemptions was granted or eligible to be granted on this property” followed by two choices: the Homeowners’ Exemption or Disabled Veterans’ Exemption. For this to work, the property that is transferred must be the parent’s principal residence and the parent should claim either the Homeowners’ Exemption or the Disabled Veterans’ Exemption. The property must be the child’s principal residence within one year of the transfer (death, gift, or sale).
The child does not have to be living in the home at the moment of death. But they do have to live there after death to keep the same taxes. They cannot not live there. They cannot rent it out and claim it as a rental. It can stay vacant but will be reassessed upon sale for any capital gains. How long it can stay vacant is a CPA question.
In the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome. If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2. Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice.
What about if the children went on the deed with the mother so the mother could qualify to refinance the home? After the new loan is in place, the children deed the home back to the mother as sole owner. Would the property taxes change because of this?
The Preliminary Change in Ownership report in Part 1 Transfer Information box J “This transaction is recorded only as a requirement for financing purposes or to create, terminate, or reconvey a security interest (e.g., cosigner). If YES, please explain: _______” can be used to avoid reassessment. For example, dad could convey to dad and daughter as joint tenants, get the loan, then daughter reconveys (transfers) the property back to dad. THIS IS NOT LEGAL ADVICE! Get legal advice before doing any of this!! www.boe.ca.gov/proptaxes/pdf/sample-boe502a.pdf
18:30 : Simplify. If the child heir lives in the inherited house as their primary residence, the taxable value is (FMV - $1,022,600 exclusion) = $977,400.
The Board of Equalization (BOE) chose to express the calculation this longer way. The 4 steps are the ones that the BOE uses in their examples. I don’t make up the rules or the methods, I am just sharing what the BOE has shared.
For a multi-unit residential building (still assessed as a single parcel) transferred by death of a parent to child(ren), several articles in mass media outlets suggests only the specific unit occupied by the parent is subject to Proposition 19 (possibly partial) reassessment exclusion and the other units will be subject to full reassessment. Do you concur and do you have reference to any published determinations? In the case I'm interested in, all units in that building have been occupied by immediate family members for >5 years and no units were rented out.
You can still leave your house to your kid and they can inherit the grandfathered prop 13 property taxes, if they live in the house, if they don't it gets reappraised
@@califdad4 The property tax situation in California was dramatically altered by the passage of California tax Proposition 19 in November 2020, which went into effect Feb. 16, 2021. Please see 04:23 for current Prop 19 Initiatives! Here is also a great resource for current initiatives: www.hjta.org/legislation/legislative-updates/#major-threats-to-prop-13
Hi Jim do you have any webinars for those who received the home as a gift prior to the implementation of prop 19 and now want to put that home into a trust/LLC? Thank you.
Hi. Before doing anything, please seek competent legal advice. This is NOT legal advice. Technically, as long as the person putting the property into the LLC is the same person who owns the shares, there is no change in ownership. The Assessor will likely ask for a Schedule of Members of the LLC. We cover that in the video. If you do not already have legal counsel, we would be happy to help you with this: www.cunninghamlegal.com/california-law-offices/contact/
How does a 2020 TODD stand against prop 19? I'm 63 with the same home since 2000. I only have one daughter, she's on the TODD. I have no other assets other than bank accounts (PODs) and my car. Thank you attorney Cunningham, I appreciate your video and expertise!
A Transfer on Death Deed is just like any other transfer (Living Trust, Death of Joint Tenant, Gift, or Probate) from Parent to Child. If all the requirements are met, there is no reassessment. But there remains work to be done and deadlines matter!
@@CunninghamLegalIf it’s in a living trust, and the kids are trustees, as long as it stays in the trust, there’s no reassessment, correct? The surviving trustees just leave it in the trust and as long as nobody moves it from the trust, nothing changes, correct?
Trying to understand…So I bought a condo for my mom in my town. I did this before she moved to my town and I remodeled the condo and got it all ready for her. When she got town, I added her on the deed so now we are both on title as joint tenants with right of survivorship. I am 65. When mom dies, will they reassess me!?!?
@@Vieweratlarge Unless it falls within the co-tenancy exception or Prop 19 exemption, 50% (based on these facts) of it might be reassessed. There is a solution to avoid this, and we might be able to help you. Please contact us for more information: www.cunninghamlegal.com/california-law-offices/contact/
I am so confused. I own 5 acres of rural land in San Bernardino County. It was my grandmother's, then my father's, now mine. I have a few chickens and a small garden for personal use only. My adult son lives with me and I want the property to go to him when I pass. My property assessment net value is under 15k. Will my property value be reassessed when my son inherits upon my passing? Would a joint tenant with right of survivorship be best? That is what my father did to give me the property when he passed. Thank you for any guidance you can offer
You should consult with a lawyer. As long as you and your child/heir meet all the requirements of Prop 19 and the property is worth less than $1M then there should likely be no reassessment. But you must follow all the rules! You can contact us here: www.cunninghamlegal.com/california-law-offices/contact/
What if you’re planning on purchasing a new home and have your parents live on the property in a ADU. It would be the parents technical residents, however the children would be the only one on the title.
If you are on title, and your parents are not on title, then when your parents pass away there should be no change in Prop 13 taxes. You may have other issues going on here including gift tax return compliance, etc.
So the game now is at 55 buy a cheap house then upgrade and bring your tax with you. or if do something to the house to loose your tax advantage sell the house to a friend and live in a cheap house for a while then buy the house back and bring your tax benefits with you reseting the tax lower as long as you are 55.
Death can be considered a change in ownership. Because of this, being in the trust doesn’t help. If the property is owned by a Trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Whether a property is owned by a Trust or individually, it can be the same outcome (except if a “Massachusetts Business Trust”).
My wife and I jointly own our primary residence, and upon our death our kids can sell it right away with no capital gain tax at all, right? However, if the house is in a trust, can our kids still avoid the such tax, as the house is no longer under our names, but under the name of the trust?
It depends on the type of Trust. If it's an irrevocable Trust, then capital gains tax will be paid upon sale. However, if the Trust is a revocable living trust, then beneficiaries can likely sell without having to pay the capital gain. It all depends on the specific facts and structure of your estate plan. Our attorneys would be happy to review your plan for you: www.cunninghamlegal.com/california-law-offices/contact/
If you jointly own it out of the trust when the survivor dies it looks like it would be a probate asset. A revocable living trust can avoid probate and get an adjusted cost basis on the death of the survivor of you and your spouse.
Can each one of the 55 year old children each buy one of the multiple houses the parents own for a $1.00. and sell the cheap house each 55 year old child lives in and bring that tax base to the parents house that they bought from their parents for a dollar $?
Interesting. I’m not sure why you would sell your house for $1.00. If you sold it at fair market value and bought your parents’ house you could transfer your tax base. Interesting upstream Prop 19, parent-to-child reassessment work around.
CA property tax law is the reason I left CA. Property tax pays for government services and there can be drastic differences in the taxes paid from one property to the property next door. Recent buyer can pay 3, 4 or even 5 times as much tax as their neighbor.
Jealous? Your neighbor is living on Social Security and you want them on the street? My grandma lost her farm due to tax increases. That was before prop 13. Prop 19 fixes a problem in prop 13 that allowed low tax rates into perpetuity.
O-M-G! You’re saying that because a new owner can afford to buy a property for $1.5M (that’s a 2500sqft home in LA or SD or EastBay SF) knowing that the annual property tax might be $20K/yr but your neighbors who bought 25 yrs ago are paying $7K in property tax that that’s wrong? GO F Yourself.
Dude SLOW DOWN ! Give me the simple one sentence answer. Then go back with the details and explanations. You're not talking to a judge. You're talking to a Pre Prop 13 owner who wants to give the home to his kids. Don't really care of the old English meaning of the word.. I have subscribed and thumbs uped. So please "KISS'
Thanks for subscribing! I do tend to talk fast, but the great thing about these recordings is that you can rewind and catch anything you might have missed. These topics are often very complex. Here's a four sentence answer: In most cases, Prop 19 will effectively eliminate the ability of a parent to leave a low tax assessment to a child. Properties are typically reassessed in value when a change of ownership occurs either by death, gift, or sale (and reassessment brings the property taxes up). Under Prop 19, the only Prop 13 tax base that can be transferred to your children is that of your "principal residence"-and your child must live on the property as their principal residence. If that’s not enough, if the home is worth more than $1M, your home may be partially or entirely reassessed, with a partial or complete loss of your Proposition 13 tax benefit.
With an LLC there is inside and outside liability. Inside liability is when a problem happens with the property in the LLC itself. Outside liability is when an owner of an interest in an LLC has a liability unconnected with the property in the LLC. California is extremely creditor-friendly and avoiding inside liability can be difficult. Of course, the idea with an LLC is to contain the liability to the assets of the LLC. Many people use jurisdictions other than California (Wyoming for example) to minimize the risk of an “outside creditor” seizing the assets of the LLC. We cover this extensively in other webinars on our RUclips page: ruclips.net/video/OuXYgOw9fZI/видео.html
My husband and I own our home free and clear and two other rental properties with small mortgages. All properties are in a revocable living trust. One of the rental properties as stated in our trust will go to the surviving spouse and the other rental will go to our son. Regarding the rental that will go to the surviving spouse, will the property tax stay the same?
@@CunninghamLegal Thank you. My husband and I looked at the other rental property that is going to our son upon the death of husband or wife. We are assuming that our son will have to pay the full reassessment since the property is already in our revocable living trust and not in a LLC. Is there any loophole for this where our son will not have to pay the full reassessment upon change of ownership?
@@SusanHwe There is a strategy to partially avoid reassessment that we can walk you through. Please contact our office: www.cunninghamlegal.com/california-law-offices/contact/
I live in my grandmother's home (she passed away), my parents and I are on the title. This is in California. I want to obtain a reverse mortgage. In order to do that I need to remove my parents from the title (they already have a reverse mortgage on their home, where they are living.) Do my property taxes get re-assessed under Prop 19?
A transfer from parent to child is a change in ownership. Prop 19 can provide a reassessment exclusion if certain requirements are met. Whether you will be reassessed or not hinges on the facts of your particular matter. We would be happy to go over this with you on a one-on-one basis: www.cunninghamlegal.com/california-law-offices/contact/
@@nick-oi1xf I'm pretty sure he was talking about bungalow heaven. That is where older craftsman homes north of the 210 are. I owned one a while back and the section was known as "Bungalow Heaven".
The government is raising how much money people can borrow to buy a house because the cost of houses has gone up. This might cause house prices to rise a bit more, but the main goal isn't to make the government more money- it's to help people be able to afford to buy a house even though prices have increased.
It is neutral in the sense that the assessor disregards the trust structure and looks at who the beneficiary is to determine ownership. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome. This does not apply to a “Massachusetts Business Trust” which is treated like an entity such as an LLC, Partnership, or Corporation when it comes to property tax law. *Please note that this is general information and NOT legal advice.
In the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2. Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice. @@thebowlerusa1
It is all very easy to understand, the government gets all it can and the people get what the government wants to give them and only for a while but it always collects the taxes and decides on the amount. Loopholes after loopholes protect the ruling class who have control of the citizens government. Speaking of a loophole can a widow marry her son and when she dies there is NO transfer of property from wife to husband.
Bought a home in 2010 Sold in 2018 to help my elderly folks out of state Now, 2024, looking to go back to cal. Can prop 19 help me with lower tax from my original 2010 purchase, or am I out of luck because I left cal for 6 years?
I can't give you legal advice in RUclips comments, so please come in and see us! Generally, the rules require the purchase of a replacement property within 2 years. www.cunninghamlegal.com/california-law-offices/contact/
You ought to be a law professor, but I suspect you might find it to be a lower income (although law schools pay up two twice what an undergrad prof makes) KW. 😂
❤❤ Need help. Living trust 2023 parent Dies and transfers to son 58 years old. He lives in home the home is 900k. Not 1 millions. Is he protected or does he have to pay more in taxes. Thanks again..
Properties that have a fair market value of $900K fall under the limits of Prop 19. Assuming all the other steps are properly followed, there should be no reassessment. This is not legal advice. Consult a lawyer. If you don’t have one, feel free to reach out to us for a consultation.
My mom purchased a home for 1.5 Million. She died and left the house to me. It is worth 2.2 Million at her death. If I live there and sell the home in 5 years, what is my cost basis?
Property that is includable in a decedent’s gross estate receives an adjusted cost basis at the date of death value. Exceptions to this rule where real property does not get an adjusted cost basis at death include, among others, property held as joint tenants, held by a corporation or held in a trust that is excluded from a decedent’s estate.
My mom created a Living Trust and passed away this May. The property is in the Trust. I'm 58 and have been renting the property from her for the past 12 years. I'm the Successor Trustee and beneficiary along with 2 siblings as beneficiaries. I want to stay in the home, and my siblings are okay with me keeping the condo as long as I buy there 1/3rds. It's a condo in Riverside CA. Mom purchased in 1995 for $50,000 and current market value is approximately $340,000. Does the property get reassessed? How do I transfer the property out of the Living Trust into my name after I pay my siblings with my portion of inherited funds (the entire estate assets are being split equally). Also, do we need an appraisal on death date?
THIS IS NOT LEGAL ADVICE. If a beneficiary purchases the shares of a property from their siblings outside of a trust, the property will likely be reassessed on the 2/3 that was bought. Consulting an attorney could help explore ways to potentially avoid this reassessment. You can contact our office and we can see if there is anything we can do to help: www.cunninghamlegal.com/california-law-offices/contact/
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@@DPitt-ty4sd I meant 13. Not 19 that modified it but by next election I don’t think the voters are getting the message. My neighbor across the street had no idea that prop 13 was even modified a few years back. And unfortunately for her, her mother died two months after 19 went into affect, and her mother was not living at the home or using that as her home address she just got a bill two years later for $22,000. And, since they waited, almost 2 years of course, she has no ability to rectify the property tax change.
Please see 04:23 for current Prop 19 Initiatives! Here is also a great resource for current initiatives: www.hjta.org/legislation/legislative-updates/#major-threats-to-prop-13
Andrea, my bad, thought you said prop 19. I hope that most people will vote to keep prop 13 in November. Yes, they want to dismantle it. Problem is, we have lot's of renters who can vote to get rid of it. However, that means their rent could go up to help pay for the owners increase.
Use a Trush to transfer things around or keep everything in the trust that way no one can fc with your stuff not even the government or gavn loozrsome.
Keep in mind, in the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome. If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2. Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice. There are several asset protection strategies that can be deployed to help protect your assets. We have an entire playlist on our channel devoted to asset protection: ruclips.net/video/Q58SIx0BHBo/видео.html
@@CunninghamLegal If the owner is the trust then then there is no one to go after and there fore they can not target anyone. So long as the trust does not issue or preside someone ownership of said property.
@@epyonrsi8829 A revocable living trust offers no asset protection with respect to the person who holds the power of revocation. Whatever you can get to your creditors can get to.
@@CunninghamLegal Then there has to be a way to take from the bureaucrats that are doing this to us. We are going to be left with nothing if this keeps going. They will never take what I have. F that sht.
As a general rule, the Assessor ignores trusts. One big exception is a “Massachusetts Business Trust” which has largely been supplanted by LLCs. A Massachusetts business trust aka a "business trust," is a type of trust. Trustees manage property and business activities for the benefit of beneficiaries. California is a state that recognizes these arrangements. This was historically used for real estate investment and other business purposes. A business trust can be treated as a legal entity. This allows the trust to enter into contracts, sue, and be sued. With the advent of LLCs, business trust usage has sharply declined. This is because LLCs offer a simpler and more flexible business structure compared to business trusts. LLCs provide limited liability protection to owners (members), similar to a corporation, while allowing for pass-through taxation and less formal management structures. The legal framework for LLCs is well-established and widely recognized across states, providing greater clarity and predictability in legal matters. Business trusts, on the other hand, may have more complex and less uniform legal treatment. LLCs can also choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation, offering more tax planning options. Business trusts may have more restrictive or complex tax implications. Due to these factors, LLCs have become the preferred choice for many businesses seeking limited liability protection and operational flexibility, leading to a decline in the use of business trusts.
The numbers were calculated with a $2 Million fair market value, since the numbers are easier to work with. The slide on 17:17 was not updated to reflect that change. Good catch!
I’m not saying the taxes I pay aren’t too high… And I’m definitely not saying California “SPECIFICALLY” doesn’t take in too much in tax revenues and then it gets spent on stupid crap… HOWEVER: I’m one of the few working class people in my family out of 16 cousins who bought their first home, without anyone’s help to do so. And my comment is that it’s not MORALLY CORRECT, That I subsidized my neighbor’s ENTIRE FAMILY simply because their parents bought a house here 50 years ago and it falls under Prop 13/58. I have some ideas on the solution, but it’s hard enough, knowing the reason my taxes are 90% higher Than my neighbors is moral/ legal. You wouldn’t go to Wal-Mart and pay 90% MORE for something than the guy behind you simply because (pick a reason).
The property tax situation in California was dramatically altered by the passage of California tax Proposition 19 in November 2020, which went into effect Feb. 16, 2021. You can read more about it here: www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/
The property tax situation in California was dramatically altered by the passage of California tax Proposition 19 in November 2020, which went into effect Feb. 16, 2021. You can read more about it here: www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/
Supporting "new comers" is going to require great increases in property taxes in all states. "New comers" are already demanding free housing at the city council meeting in Seattle Washington. They were so loud and disruptive that security was called to have them removed.
Sounds like a bunch of commies.
What do you expect from freeloading criminals?
You misspelled illegals .
They are not newcomers. They are illegal immigrants
they can starve or return to their legal residence
Listening to this makes me so glad I’m retired. I spent about 16 years explaining things like Prop 58, Prop 60 etc. But I can’t even imagine trying to explain Prop 19 over the phone!
Congratulations on retirement! We do our best to explain Prop-19 with videos, hour long consults, and written articles. It can sure be difficult since it is so complex. Here's a link to our website page: www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/
THANK YOU‼️ I’m sharing this w/my son. He needs to know this as I don’t think I have that many yrs left.
I'm glad you found this helpful! Thanks for leaving a comment.
So, there were some advantages to being a lawyer and finance professor! I found the calculation rather easy; however, you now force me (age 78) to have the discussion with my two daughters. The form will nevertheless require checking with a real estate lawyer in Ventura County by my children when the last of us (wife and me) dies. The fact that you outlined the end-of-life options, assuming it is my wife (very likely, although she is only a little over 3 years younger). I am certainly asking my younger daughter to listen to this! (My older daughter will probably pass). :). THANK YOU & continue the good work. I taught only one class at Pep’s law school (accounting, finance & law) and taught as much finance as I did business law, but I never practiced law in California (Illinois, the worst state of all for taxes has a high income tax, high sales tax, and a high real estate tax, so, on a million dollar house (which would be a mansion in Southern Illinois, but about like mine in a subdivision of Chicago), I would pay (estimated) probably as much as two to three times as much as I do under our 1% tax on new purchase. Illinois also treats some other sources of retirement income, so staying in California has been an acceptable result of my children & grandchildren all living here. (Of course, if I could leave my loved ones, I would not have moved to Illinois (probably Missouri or Tennessee).
Thank you for the kind words!
Excellent intel. Thanks for sharing! I followed the elimination of the parent to grandchild exclusion but not this sequel re: porting property tax base! Wow.
Thank you!
I'm guessing that since we lost our house in foreclosure in 2010, and are now buying another home, we are not eligible for the tax benefit? We're both over 65
I was once a tax lawyer (1978 or so, so now incompetent), however, something you said raised a question: Does California law or federal law not provide a step up in basis to date of date of decedent, because years ago (as a minister in CA then), I advised a family well into their 80s not to sell the property they had homesteader around 1910, it overlooked the ocean in Pacific Palisades (guy had been a rodeo rope trickster). Only in early CA, right! Do we still get step up in basis?
Yes but the taxes can change as he mentioned
No, its the step up value when inherited that was lost in prop 19. Basically, it reinstated the death tax.
@@jeannehenslick9465 why don’t we get the step up value? ?
If property in included in a decedent’s gross estate, it typically receives an adjusted cost basis. For community property, the full value of community property that is owned by the deceased spouse is includable in the deceased spouse’s estate. So, yes, property held as community property can receive an adjusted cost basis… provided it was included in a decedent’s gross estate.
I love prop 13, which actually reduce property tax for Californians. Since that time bond issue after body if she was increase the tax rate going around about wonderful proposition 13.
Thanks for leaving a comment!
Prop 13 was to really to keep taxes low for the super rich and corporations. Sure home owners got some benefits out of it. But the mega corporations and super rich benefit the most and use the most in resources. One the co-writers of the bill. Confession he never saw how the large corporations in california were benefiting and most out of it.
On Prop 19. Most homebuyers in California in the 50 60 70’s were middle-class. Many of the migrants and lower income had to rent now the children of those migrants and low income are in power in Sacramento and are getting back at those middle class. I gotta say you’re winning. You’re pushing us out of California. Winner, winner, chicken dinner. this is just my opinion.
The prize will be a destroyed economy
Prop. 13 held property taxes down for the mostly White homeowners. Now the recent buyers and voters are mostly non-white and this unjust property tax system needs to be fixed. I left CA because I was paying 5x more taxes than most of my neighbors. Property taxes pay for city services and since everyone gets the same service there should be no disparity.
loved your video. one item. my late mother specialized early in her carrier in wills, estates, and trusts. so for herself she move her California property into her trust.
I'm glad you loved the video! In the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome.
If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2.
Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice.
Should the parent reside in the same home with the child so that the parent can transfer the primary resident home to the child in an event when the parent dies? How should the parent prove to be the primary resident for the home? Does the parents' address on the tax report form prove enough to prove as their primary resident? Can we avoid the reassessment in the event when the parent dies?
Not necessarily. The child doesn’t have to live with the parent, but certainly can (this is different than the Co-Tenancy Exclusion discussed in the video at 30:33). Item 2 on the BOE-19-P form asks “Was this property the transferor’s principal residence?” and the answer is either yes or no. If yes, it asks “…which of the following exemptions was granted or eligible to be granted on this property” followed by two choices: the Homeowners’ Exemption or Disabled Veterans’ Exemption. For this to work, the property that is transferred must be the parent’s principal residence and the parent should claim either the Homeowners’ Exemption or the Disabled Veterans’ Exemption. The property must be the child’s principal residence within one year of the transfer (death, gift, or sale).
The child does not have to be living in the home at the moment of death. But they do have to live there after death to keep the same taxes. They cannot not live there. They cannot rent it out and claim it as a rental. It can stay vacant but will be reassessed upon sale for any capital gains. How long it can stay vacant is a CPA question.
Put it all in a trust .
In the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome.
If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2.
Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice.
What about if the children went on the deed with the mother so the mother could qualify to refinance the home? After the new loan is in place, the children deed the home back to the mother as sole owner. Would the property taxes change because of this?
The Preliminary Change in Ownership report in Part 1 Transfer Information box J “This transaction is recorded only as a requirement for financing purposes or to create, terminate, or reconvey a security interest (e.g., cosigner). If YES, please explain: _______” can be used to avoid reassessment. For example, dad could convey to dad and daughter as joint tenants, get the loan, then daughter reconveys (transfers) the property back to dad. THIS IS NOT LEGAL ADVICE! Get legal advice before doing any of this!! www.boe.ca.gov/proptaxes/pdf/sample-boe502a.pdf
18:30 : Simplify. If the child heir lives in the inherited house as their primary residence, the taxable value is (FMV - $1,022,600 exclusion) = $977,400.
The Board of Equalization (BOE) chose to express the calculation this longer way. The 4 steps are the ones that the BOE uses in their examples. I don’t make up the rules or the methods, I am just sharing what the BOE has shared.
@@CunninghamLegal Gotcha. Yeah, I found the calculations from our duly not-elected bureaucracy. Also, read your book!
@@advancetotabletop5328 That's great! I hope you enjoyed it.
For a multi-unit residential building (still assessed as a single parcel) transferred by death of a parent to child(ren), several articles in mass media outlets suggests only the specific unit occupied by the parent is subject to Proposition 19 (possibly partial) reassessment exclusion and the other units will be subject to full reassessment. Do you concur and do you have reference to any published determinations? In the case I'm interested in, all units in that building have been occupied by immediate family members for >5 years and no units were rented out.
Based on the information you have given me, this is my understanding. Take a look at Question 20 on www.boe.ca.gov/proptaxes/pdf/lta21008.pdf.
You can still leave your house to your kid and they can inherit the grandfathered prop 13 property taxes, if they live in the house, if they don't it gets reappraised
Please see 30:33 Co-Tenancy Exclusion. (reminder: this is information, NOT legal advice)
@@CunninghamLegal they need to twerk this law, it has to go through the voting process
@@califdad4 The property tax situation in California was dramatically altered by the passage of California tax Proposition 19 in November 2020, which went into effect Feb. 16, 2021. Please see 04:23 for current Prop 19 Initiatives! Here is also a great resource for current initiatives: www.hjta.org/legislation/legislative-updates/#major-threats-to-prop-13
Hi Jim do you have any webinars for those who received the home as a gift prior to the implementation of prop 19 and now want to put that home into a trust/LLC? Thank you.
Hi. Before doing anything, please seek competent legal advice. This is NOT legal advice. Technically, as long as the person putting the property into the LLC is the same person who owns the shares, there is no change in ownership. The Assessor will likely ask for a Schedule of Members of the LLC. We cover that in the video. If you do not already have legal counsel, we would be happy to help you with this: www.cunninghamlegal.com/california-law-offices/contact/
How does a 2020 TODD stand against prop 19? I'm 63 with the same home since 2000. I only have one daughter, she's on the TODD. I have no other assets other than bank accounts (PODs) and my car. Thank you attorney Cunningham, I appreciate your video and expertise!
A Transfer on Death Deed is just like any other transfer (Living Trust, Death of Joint Tenant, Gift, or Probate) from Parent to Child. If all the requirements are met, there is no reassessment. But there remains work to be done and deadlines matter!
@@CunninghamLegalIf it’s in a living trust, and the kids are trustees, as long as it stays in the trust, there’s no reassessment, correct? The surviving trustees just leave it in the trust and as long as nobody moves it from the trust, nothing changes, correct?
Trying to understand…So I bought a condo for my mom in my town. I did this before she moved to my town and I remodeled the condo and got it all ready for her. When she got town, I added her on the deed so now we are both on title as joint tenants with right of survivorship. I am 65. When mom dies, will they reassess me!?!?
@@Vieweratlarge Unless it falls within the co-tenancy exception or Prop 19 exemption, 50% (based on these facts) of it might be reassessed. There is a solution to avoid this, and we might be able to help you. Please contact us for more information: www.cunninghamlegal.com/california-law-offices/contact/
I am so confused. I own 5 acres of rural land in San Bernardino County. It was my grandmother's, then my father's, now mine. I have a few chickens and a small garden for personal use only. My adult son lives with me and I want the property to go to him when I pass. My property assessment net value is under 15k. Will my property value be reassessed when my son inherits upon my passing? Would a joint tenant with right of survivorship be best? That is what my father did to give me the property when he passed. Thank you for any guidance you can offer
You should consult with a lawyer. As long as you and your child/heir meet all the requirements of Prop 19 and the property is worth less than $1M then there should likely be no reassessment. But you must follow all the rules! You can contact us here: www.cunninghamlegal.com/california-law-offices/contact/
Similar situation here , mom made me joint tenant , want my disabled child to have the little house , but can't afford a lawyer...
What if you’re planning on purchasing a new home and have your parents live on the property in a ADU. It would be the parents technical residents, however the children would be the only one on the title.
If you are on title, and your parents are not on title, then when your parents pass away there should be no change in Prop 13 taxes. You may have other issues going on here including gift tax return compliance, etc.
So the game now is at 55 buy a cheap house then upgrade and bring your tax with you. or if do something to the house to loose your tax advantage sell the house to a friend and live in a cheap house for a while then buy the house back and bring your tax benefits with you reseting the tax lower as long as you are 55.
Perhaps. Or consider downsizing, taking money off the table, and keeping low property taxes. There's lots of retirement planning strategies here!
Awesomeness explanation 😊
Glad it was helpful and thanks for subscribing!
If child keeps parent trust open, can they avoid being reassessed? How does this strategy work long term as an option to avoid reassessment?
Death can be considered a change in ownership. Because of this, being in the trust doesn’t help. If the property is owned by a Trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Whether a property is owned by a Trust or individually, it can be the same outcome (except if a “Massachusetts Business Trust”).
My wife and I jointly own our primary residence, and upon our death our kids can sell it right away with no capital gain tax at all, right? However, if the house is in a trust, can our kids still avoid the such tax, as the house is no longer under our names, but under the name of the trust?
It depends on the type of Trust. If it's an irrevocable Trust, then capital gains tax will be paid upon sale. However, if the Trust is a revocable living trust, then beneficiaries can likely sell without having to pay the capital gain. It all depends on the specific facts and structure of your estate plan. Our attorneys would be happy to review your plan for you: www.cunninghamlegal.com/california-law-offices/contact/
If you jointly own it out of the trust when the survivor dies it looks like it would be a probate asset. A revocable living trust can avoid probate and get an adjusted cost basis on the death of the survivor of you and your spouse.
Can each one of the 55 year old children each buy one of the multiple houses the parents own for a $1.00. and sell the cheap house each 55 year old child lives in and bring that tax base to the parents house that they bought from their parents for a dollar $?
Interesting. I’m not sure why you would sell your house for $1.00. If you sold it at fair market value and bought your parents’ house you could transfer your tax base. Interesting upstream Prop 19, parent-to-child reassessment work around.
CA property tax law is the reason I left CA. Property tax pays for government services and there can be drastic differences in the taxes paid from one property to the property next door. Recent buyer can pay 3, 4 or even 5 times as much tax as their neighbor.
Jealous? Your neighbor is living on Social Security and you want them on the street? My grandma lost her farm due to tax increases. That was before prop 13. Prop 19 fixes a problem in prop 13 that allowed low tax rates into perpetuity.
@@Krunch2020Prop 19 fixes nothing. Low property tax is not the problem. Government spending is.
Then please stop using roads, freeways, schools, storm systems, and everything the govt builds, provides, and maintians... @@raulthepig5821
O-M-G! You’re saying that because a new owner can afford to buy a property for $1.5M (that’s a 2500sqft home in LA or SD or EastBay SF) knowing that the annual property tax might be $20K/yr but your neighbors who bought 25 yrs ago are paying $7K in property tax that that’s wrong? GO F Yourself.
U R right.
Dude SLOW DOWN ! Give me the simple one sentence answer. Then go back with the details and explanations. You're not talking to a judge. You're talking to a Pre Prop 13 owner who wants to give the home to his kids. Don't really care of the old English meaning of the word.. I have subscribed and thumbs uped. So please "KISS'
Thanks for subscribing! I do tend to talk fast, but the great thing about these recordings is that you can rewind and catch anything you might have missed. These topics are often very complex. Here's a four sentence answer:
In most cases, Prop 19 will effectively eliminate the ability of a parent to leave a low tax assessment to a child. Properties are typically reassessed in value when a change of ownership occurs either by death, gift, or sale (and reassessment brings the property taxes up).
Under Prop 19, the only Prop 13 tax base that can be transferred to your children is that of your "principal residence"-and your child must live on the property as their principal residence. If that’s not enough, if the home is worth more than $1M, your home may be partially or entirely reassessed, with a partial or complete loss of your Proposition 13 tax benefit.
Doesn't having more than one owner or an LLC with a few owners open the property to lawsuits and liability among the "owners"? Seems that way.
With an LLC there is inside and outside liability. Inside liability is when a problem happens with the property in the LLC itself. Outside liability is when an owner of an interest in an LLC has a liability unconnected with the property in the LLC. California is extremely creditor-friendly and avoiding inside liability can be difficult. Of course, the idea with an LLC is to contain the liability to the assets of the LLC. Many people use jurisdictions other than California (Wyoming for example) to minimize the risk of an “outside creditor” seizing the assets of the LLC. We cover this extensively in other webinars on our RUclips page: ruclips.net/video/OuXYgOw9fZI/видео.html
My husband and I own our home free and clear and two other rental properties with small mortgages. All properties are in a revocable living trust. One of the rental properties as stated in our trust will go to the surviving spouse and the other rental will go to our son. Regarding the rental that will go to the surviving spouse, will the property tax stay the same?
Transfers between spouse are not changes in ownership. Property is subject to reassessment when there is a change in ownership.
@@CunninghamLegal Thank you. My husband and I looked at the other rental property that is going to our son upon the death of husband or wife. We are assuming that our son will have to pay the full reassessment since the property is already in our revocable living trust and not in a LLC. Is there any loophole for this where our son will not have to pay the full reassessment upon change of ownership?
@@SusanHwe There is a strategy to partially avoid reassessment that we can walk you through. Please contact our office: www.cunninghamlegal.com/california-law-offices/contact/
I live in my grandmother's home (she passed away), my parents and I are on the title. This is in California.
I want to obtain a reverse mortgage. In order to do that I need to remove my parents from the title (they already have a reverse mortgage on their home, where they are living.)
Do my property taxes get re-assessed under Prop 19?
A transfer from parent to child is a change in ownership. Prop 19 can provide a reassessment exclusion if certain requirements are met. Whether you will be reassessed or not hinges on the facts of your particular matter. We would be happy to go over this with you on a one-on-one basis: www.cunninghamlegal.com/california-law-offices/contact/
at the 21:00 minute mark you are looking for the words "Bungalow Heaven" I think
Those homes north of the 210 are not bungalows, they are very nice custom homes.
@@nick-oi1xf I'm pretty sure he was talking about bungalow heaven. That is where older craftsman homes north of the 210 are. I owned one a while back and the section was known as "Bungalow Heaven".
That's right!
The Fed govt keep raising the loan limit so they definitely trying to inflate the home price to make sure the local govt get richer.
The government is raising how much money people can borrow to buy a house because the cost of houses has gone up. This might cause house prices to rise a bit more, but the main goal isn't to make the government more money- it's to help people be able to afford to buy a house even though prices have increased.
if your property is in a trust, how does the prop 19 effect it?
It is neutral in the sense that the assessor disregards the trust structure and looks at who the beneficiary is to determine ownership. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome. This does not apply to a “Massachusetts Business Trust” which is treated like an entity such as an LLC, Partnership, or Corporation when it comes to property tax law. *Please note that this is general information and NOT legal advice.
@@CunninghamLegal Still confused about having the property in a trust
In the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2.
Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice. @@thebowlerusa1
It is all very easy to understand, the government gets all it can and the people get what the government wants to give them and only for a while but it always collects the taxes and decides on the amount. Loopholes after loopholes protect the ruling class who have control of the citizens government. Speaking of a loophole can a widow marry her son and when she dies there is NO transfer of property from wife to husband.
That’s a legal and cultural hard “no.” Sophocles has something to say about this. Of course, Oedipus didn’t know Jocasta was his mother….
Bought a home in 2010
Sold in 2018 to help my elderly folks out of state
Now, 2024, looking to go back to cal.
Can prop 19 help me with lower tax from my original 2010 purchase, or am I out of luck because I left cal for 6 years?
I can't give you legal advice in RUclips comments, so please come in and see us! Generally, the rules require the purchase of a replacement property within 2 years. www.cunninghamlegal.com/california-law-offices/contact/
Giving wealthy people inflation protection puts excessive burden on the working class. If you work for a living (w2) you are screwed.
I think you'll find this video interesting: ruclips.net/video/5xedZL4EXGQ/видео.html
You ought to be a law professor, but I suspect you might find it to be a lower income (although law schools pay up two twice what an undergrad prof makes) KW. 😂
Thank you!
❤❤ Need help. Living trust 2023 parent Dies and transfers to son 58 years old. He lives in home the home is 900k. Not 1 millions. Is he protected or does he have to pay more in taxes. Thanks again..
Properties that have a fair market value of $900K fall under the limits of Prop 19. Assuming all the other steps are properly followed, there should be no reassessment. This is not legal advice. Consult a lawyer. If you don’t have one, feel free to reach out to us for a consultation.
My mom purchased a home for 1.5 Million. She died and left the house to me. It is worth 2.2 Million at her death. If I live there and sell the home in 5 years, what is my cost basis?
Property that is includable in a decedent’s gross estate receives an adjusted cost basis at the date of death value. Exceptions to this rule where real property does not get an adjusted cost basis at death include, among others, property held as joint tenants, held by a corporation or held in a trust that is excluded from a decedent’s estate.
My mom created a Living Trust and passed away this May. The property is in the Trust. I'm 58 and have been renting the property from her for the past 12 years. I'm the Successor Trustee and beneficiary along with 2 siblings as beneficiaries. I want to stay in the home, and my siblings are okay with me keeping the condo as long as I buy there 1/3rds. It's a condo in Riverside CA. Mom purchased in 1995 for $50,000 and current market value is approximately $340,000. Does the property get reassessed? How do I transfer the property out of the Living Trust into my name after I pay my siblings with my portion of inherited funds (the entire estate assets are being split equally). Also, do we need an appraisal on death date?
THIS IS NOT LEGAL ADVICE. If a beneficiary purchases the shares of a property from their siblings outside of a trust, the property will likely be reassessed on the 2/3 that was bought. Consulting an attorney could help explore ways to potentially avoid this reassessment. You can contact our office and we can see if there is anything we can do to help: www.cunninghamlegal.com/california-law-offices/contact/
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question , 2011i sold my home in ventura county $500K my tax only $1500 (bought it 150 K ) ,if i buy a home now can i use Pro 13 for my property tax ?
To transfer your tax base, the properties typically have to be bought/sold within a window of no more than 2 years.
@@CunninghamLegal thanks for reply
What prop 13? It’s about to be completely undone.
ANDREA: How so, are they going to do another repeal ? I hope so!
@@DPitt-ty4sd I meant 13. Not 19 that modified it but by next election I don’t think the voters are getting the message.
My neighbor across the street had no idea that prop 13 was even modified a few years back. And unfortunately for her, her mother died two months after 19 went into affect, and her mother was not living at the home or using that as her home address she just got a bill two years later for $22,000. And, since they waited, almost 2 years of course, she has no ability to rectify the property tax change.
Please see 04:23 for current Prop 19 Initiatives! Here is also a great resource for current initiatives: www.hjta.org/legislation/legislative-updates/#major-threats-to-prop-13
Andrea, my bad, thought you said prop 19. I hope that most people will vote to keep prop 13 in November. Yes, they want to dismantle it.
Problem is, we have lot's of renters who can vote to get rid of it. However, that means their rent could go up to help pay for the owners increase.
@@CunninghamLegal Thank you for the info.
Use a Trush to transfer things around or keep everything in the trust that way no one can fc with your stuff not even the government or gavn loozrsome.
Keep in mind, in the context of a property held in a Revocable Trust, Proposition 19 impacts it depending on who the beneficiary of the trust is. Stated another way, whether a property is owned by a trust or individually, it can be the same outcome.
If the property is owned by a trust, but the beneficiary is the homeowner, then it's treated as if the individual owns the property for the purposes of Proposition 19. This could lead to potential re-assessment upon the death of the Trust owner, just as it would if it were owned by an individual. Here is further examples: www.boe.ca.gov › rules › Rule462_160. This example mentioned is Example 4, section 2.
Remember, the specifics of how Proposition 19 impacts a property can vary based on numerous factors, so this is a general explanation and not legal advice. There are several asset protection strategies that can be deployed to help protect your assets. We have an entire playlist on our channel devoted to asset protection: ruclips.net/video/Q58SIx0BHBo/видео.html
@@CunninghamLegal If the owner is the trust then then there is no one to go after and there fore they can not target anyone. So long as the trust does not issue or preside someone ownership of said property.
@@epyonrsi8829 A revocable living trust offers no asset protection with respect to the person who holds the power of revocation. Whatever you can get to your creditors can get to.
@@CunninghamLegal Then there has to be a way to take from the bureaucrats that are doing this to us. We are going to be left with nothing if this keeps going. They will never take what I have. F that sht.
What if the house is under a trust?
As a general rule, the Assessor ignores trusts. One big exception is a “Massachusetts Business Trust” which has largely been supplanted by LLCs.
A Massachusetts business trust aka a "business trust," is a type of trust. Trustees manage property and business activities for the benefit of beneficiaries. California is a state that recognizes these arrangements. This was historically used for real estate investment and other business purposes. A business trust can be treated as a legal entity. This allows the trust to enter into contracts, sue, and be sued.
With the advent of LLCs, business trust usage has sharply declined. This is because LLCs offer a simpler and more flexible business structure compared to business trusts. LLCs provide limited liability protection to owners (members), similar to a corporation, while allowing for pass-through taxation and less formal management structures.
The legal framework for LLCs is well-established and widely recognized across states, providing greater clarity and predictability in legal matters. Business trusts, on the other hand, may have more complex and less uniform legal treatment. LLCs can also choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation, offering more tax planning options. Business trusts may have more restrictive or complex tax implications.
Due to these factors, LLCs have become the preferred choice for many businesses seeking limited liability protection and operational flexibility, leading to a decline in the use of business trusts.
At 17:17 the FMV of the example home is $1,750,000 but at 17:20, the next slide the FMV of the example home is $2,000,000. Editing error?
The numbers were calculated with a $2 Million fair market value, since the numbers are easier to work with. The slide on 17:17 was not updated to reflect that change. Good catch!
Now I know why people are homeless.
I’m not saying the taxes I pay aren’t too high…
And I’m definitely not saying California “SPECIFICALLY” doesn’t take in too much in tax revenues and then it gets spent on stupid crap…
HOWEVER:
I’m one of the few working class people in my family out of 16 cousins who bought their first home, without anyone’s help to do so.
And my comment is that it’s not
MORALLY CORRECT,
That I subsidized my neighbor’s ENTIRE FAMILY simply because their parents bought a house here 50 years ago and it falls under Prop 13/58.
I have some ideas on the solution, but it’s hard enough, knowing the reason my taxes are
90% higher
Than my neighbors is moral/ legal.
You wouldn’t go to Wal-Mart and pay 90% MORE for something than the guy behind you simply because (pick a reason).
Jealous much? "Johnny has more than me, the state needs to take what he has so we are equally poor." Waaaaaaaaaaaaaaaaaaa. 😭 😭😭😭😭😭😭😭😭😭
When you retire downsize and move, preferably out of California.
Vote no
The property tax situation in California was dramatically altered by the passage of California tax Proposition 19 in November 2020, which went into effect Feb. 16, 2021. You can read more about it here: www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/
Vote no on this stupid proposal!!!
The property tax situation in California was dramatically altered by the passage of California tax Proposition 19 in November 2020, which went into effect Feb. 16, 2021. You can read more about it here: www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/
California is doomed
California can actually be a great place to retire! Check out our recent video: ruclips.net/video/WyKHDIXA7wE/видео.htmlsi=WS8yLxJJEMbn-XZ0