In theory. It would be interesting to have an analysis done to see how many properties have Prop 13 status from 1975. I'm sure there are a few but I bet turnover is still pretty high. I know very few people who kept the family house.physiorol wrote: ↑Wed Oct 11, 2017 12:24 amSo passing on the family home in a state like CA (prop 13) could provide a massive financial advantage to offspring.Carefreeap wrote: ↑Sat Oct 07, 2017 4:59 pmHe would have had he not lost the property in foreclosure in 2009.physiorol wrote: ↑Sat Oct 07, 2017 4:20 pmSo does the recipient of the house (eg your brother) keep the tax assessment?Carefreeap wrote: ↑Mon Oct 02, 2017 6:02 pmAs an example, when my parents divorced they sold their house to my brother. They had bought the house in 1963 and the assessed value was something like $70k when they sold in 1996. Market value was about $325k. Taxes were about $700/yr!
Bay Area Real Estate
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Re: Bay Area Real Estate
Every day I can hike is a good day.
- Hyperborea
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Re: Bay Area Real Estate
I've benefited from Prop 13 but I'm not sure that over the long run it's beneficial for the community. It does limit the increase in taxes to a level that can be below inflation (2%) and that means that municipal budgets are capped to grow slower than inflation. That then has an impact on the quality of the local roads, schools, and other community resources. While most houses will turn over in 10-20 years, corporations can and do keep property for far longer than that and over time will be the main beneficiary of Prop 13.Carefreeap wrote: ↑Wed Oct 11, 2017 9:45 amIn theory. It would be interesting to have an analysis done to see how many properties have Prop 13 status from 1975. I'm sure there are a few but I bet turnover is still pretty high. I know very few people who kept the family house.physiorol wrote: ↑Wed Oct 11, 2017 12:24 amSo passing on the family home in a state like CA (prop 13) could provide a massive financial advantage to offspring.Carefreeap wrote: ↑Sat Oct 07, 2017 4:59 pmHe would have had he not lost the property in foreclosure in 2009.physiorol wrote: ↑Sat Oct 07, 2017 4:20 pmSo does the recipient of the house (eg your brother) keep the tax assessment?Carefreeap wrote: ↑Mon Oct 02, 2017 6:02 pm
As an example, when my parents divorced they sold their house to my brother. They had bought the house in 1963 and the assessed value was something like $70k when they sold in 1996. Market value was about $325k. Taxes were about $700/yr!
I think not forcing people to move because of property tax increases is admirable but I'm not sure that Prop 13 is the best solution. It's only been in force for about 40 years but with the slow decline in some of the infrastructure and the steadily decreasing percent of local property tax paid by business this will have to break at some point.
It’s not just that facts don’t seem to matter anymore. It’s that it doesn’t seem to matter that facts don’t matter.
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I don't know; business grow and go out of business, and heirs to them will sell too so there's turnover. And utilities (including the railroads) are not protected under prop 13. Only a survey can really tell you what % of property owners have ultra low inherited tax bases.Hyperborea wrote: ↑Wed Oct 11, 2017 11:09 amI've benefited from Prop 13 but I'm not sure that over the long run it's beneficial for the community. It does limit the increase in taxes to a level that can be below inflation (2%) and that means that municipal budgets are capped to grow slower than inflation. That then has an impact on the quality of the local roads, schools, and other community resources. While most houses will turn over in 10-20 years, corporations can and do keep property for far longer than that and over time will be the main beneficiary of Prop 13.Carefreeap wrote: ↑Wed Oct 11, 2017 9:45 amIn theory. It would be interesting to have an analysis done to see how many properties have Prop 13 status from 1975. I'm sure there are a few but I bet turnover is still pretty high. I know very few people who kept the family house.physiorol wrote: ↑Wed Oct 11, 2017 12:24 amSo passing on the family home in a state like CA (prop 13) could provide a massive financial advantage to offspring.Carefreeap wrote: ↑Sat Oct 07, 2017 4:59 pmHe would have had he not lost the property in foreclosure in 2009.
I think not forcing people to move because of property tax increases is admirable but I'm not sure that Prop 13 is the best solution. It's only been in force for about 40 years but with the slow decline in some of the infrastructure and the steadily decreasing percent of local property tax paid by business this will have to break at some point.
CA's infrastructure problems are more complicated than just prop 13. Until recently schools were able to get around prop 13 limits by passing certain kinds of bonds based on a simple majority. During my tenure in my Bay Area town, I don't think a single school bond was ever defeated.
Every day I can hike is a good day.
Re: Bay Area Real Estate
Does the child receiving property from a parent need to live in the house to keep the low property tax basis or does it work for investment properties too?Carefreeap wrote: ↑Wed Oct 11, 2017 3:01 pmI don't know; business grow and go out of business, and heirs to them will sell too so there's turnover. And utilities (including the railroads) are not protected under prop 13. Only a survey can really tell you what % of property owners have ultra low inherited tax bases.Hyperborea wrote: ↑Wed Oct 11, 2017 11:09 amI've benefited from Prop 13 but I'm not sure that over the long run it's beneficial for the community. It does limit the increase in taxes to a level that can be below inflation (2%) and that means that municipal budgets are capped to grow slower than inflation. That then has an impact on the quality of the local roads, schools, and other community resources. While most houses will turn over in 10-20 years, corporations can and do keep property for far longer than that and over time will be the main beneficiary of Prop 13.Carefreeap wrote: ↑Wed Oct 11, 2017 9:45 amIn theory. It would be interesting to have an analysis done to see how many properties have Prop 13 status from 1975. I'm sure there are a few but I bet turnover is still pretty high. I know very few people who kept the family house.physiorol wrote: ↑Wed Oct 11, 2017 12:24 amSo passing on the family home in a state like CA (prop 13) could provide a massive financial advantage to offspring.Carefreeap wrote: ↑Sat Oct 07, 2017 4:59 pm
He would have had he not lost the property in foreclosure in 2009.
I think not forcing people to move because of property tax increases is admirable but I'm not sure that Prop 13 is the best solution. It's only been in force for about 40 years but with the slow decline in some of the infrastructure and the steadily decreasing percent of local property tax paid by business this will have to break at some point.
CA's infrastructure problems are more complicated than just prop 13. Until recently schools were able to get around prop 13 limits by passing certain kinds of bonds based on a simple majority. During my tenure in my Bay Area town, I don't think a single school bond was ever defeated.
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Re: Bay Area Real Estate
Parent to child, Grandparent to grandchild and Child to parent transfers are exempt from reassessment. There is a $1m limit on non principal transfers. The new property owner doesn't need to owner-occupy the property. However sibling transfers aren't exempt and that's another plus for placing a property into a Living Trust. Although both my brother and I were beneficiaries of my mother's Trust, making the transfer of her condo from her Trust to my Trust was exempt. As executor of her estate I could have done something similar with the little rental property which wasn't titled in her Trust by handing my brother his share of the equity and doing a direct transfer out of her name to me.physiorol wrote: ↑Wed Oct 11, 2017 10:41 pmDoes the child receiving property from a parent need to live in the house to keep the low property tax basis or does it work for investment properties too?Carefreeap wrote: ↑Wed Oct 11, 2017 3:01 pmI don't know; business grow and go out of business, and heirs to them will sell too so there's turnover. And utilities (including the railroads) are not protected under prop 13. Only a survey can really tell you what % of property owners have ultra low inherited tax bases.Hyperborea wrote: ↑Wed Oct 11, 2017 11:09 amI've benefited from Prop 13 but I'm not sure that over the long run it's beneficial for the community. It does limit the increase in taxes to a level that can be below inflation (2%) and that means that municipal budgets are capped to grow slower than inflation. That then has an impact on the quality of the local roads, schools, and other community resources. While most houses will turn over in 10-20 years, corporations can and do keep property for far longer than that and over time will be the main beneficiary of Prop 13.Carefreeap wrote: ↑Wed Oct 11, 2017 9:45 amIn theory. It would be interesting to have an analysis done to see how many properties have Prop 13 status from 1975. I'm sure there are a few but I bet turnover is still pretty high. I know very few people who kept the family house.
I think not forcing people to move because of property tax increases is admirable but I'm not sure that Prop 13 is the best solution. It's only been in force for about 40 years but with the slow decline in some of the infrastructure and the steadily decreasing percent of local property tax paid by business this will have to break at some point.
CA's infrastructure problems are more complicated than just prop 13. Until recently schools were able to get around prop 13 limits by passing certain kinds of bonds based on a simple majority. During my tenure in my Bay Area town, I don't think a single school bond was ever defeated.
Here's a reference site you might find helpful: http://www.ocgov.com/gov/assessor/programs/transfer
In thinking about it further, I would guess that this could be one downside to the recently approved beneficiary deed option. Property going from a parent's name directly to the beneficiaries could trigger some partial reassessments if the siblings wanted to be bought out.
Every day I can hike is a good day.