4 ms·

"They can also hand it down to their family, entrenching wealth for generations." Not any more.

• HWR_14 4y ago
  Why not? What changed?
  • rahimnathwani 4y ago
    Prop 19
• gnicholas 4y ago
  I think this new rule only applies to property that is inherited and not lived in by the inheritor (e.g., rental property or vacation home). If you inherit a home and live in it, I think you can still keep the old property tax basis. There may be some dollar value limitations or other rules I’m not remembering though. EDIT: just checked, the property value can go up by $1M from when it was purchased without the inheritor owing additional tax. [1] Beyond that, tax is due on the incremental additional appreciation. In reality, this will only affect properties in a few metro areas (Bay Area, LA, OC, SD) and certain beachside properties. This isn't to say that the law is good or bad, just to describe the scope of its likely impact. 1: https://www.cunninghamlegal.com/california-legal-services/california-prop-13-protection-prop-19-strategy/ https://www.cunninghamlegal.com/california-legal-services/ca...
  • rahimnathwani 4y ago
    IIRC the taxable value (not sure of the technical term）goes up by up to $1MM
    • throwaway_4ever 4y ago
      No, it's $1m of taxable value increase is waived if and only if a parent's only home is sold/transferred to a child's only home. Example 1: Bay Area home $1.7m; old taxable value $300k, new taxable value $700k (1.7m - 1m), prop taxes ~9k/year. Example 2: Fresno home $700k; old taxable value $200k, new taxable value $200k (700k - 1m, so no affect) Grandparent's home? Parent's second home? Child's second home? Uncle's home? Sibling's home? No. Bay home is now $1.7m taxable, $21k/year
• gautamdivgi 4y ago
  You can via trusts. If you have a $2m house put it in a trust.