California Property Tax Advice and Consultation
Our conversation with CEO Michael Wyatt of Michael Wyatt Consulting, a Real Property & Property Tax Advisory firm based in Corona, CA – continues…
Property Tax Transfer: And what about your clients, Mr. Wyatt? Do they understand and go along freely with your plan, avoiding property tax reassessment with Proposition 13, and property tax transfer, with the right to transfer parents property taxes, and other benefits from Proposition 58… the whole nine yards?
Michael Wyatt: Most of my clients own real estate…. To inherit a house from their parents, my clients would have to pay reassessed taxes on their own home and the inherited property from their parents. Most people understand that with Proposition 13 they (A) save their inherited home, and (B) get a significant tax break on their primary residence… Without these tax breaks most middle class people, and elderly folks living on a fixed, generally modest income – would, in most cases, be forced to sell their inherited property.
Property Tax Transfer: With so many positive factors generated by Proposition 13 and Proposition 58 – why would anyone go against these tax breaks that positively impact the middle class, the upper classes, blue collar folks – you name it! Who are all those people over-using the media to endlessly whine about Prop 13 adversely affecting ownership of real estate in California; causing shrinkage of the real estate market. They appear to be endlessly pushing back against property tax breaks that are so incredibly popular, so beloved by all Californians… that even renters seem to get the fact that keeping landlords’ property taxes low also keeps their rent low…
Michael Wyatt: Politicians with special interests clearly want to destroy Proposition 13, and ultimately Proposition 58 and 193 – for their political interests, claiming under-funding and over-spending supposedly brought about by property tax breaks.
Property Tax Transfer: Sir, what in fact is actually causing all that under-funding and over-spending? Folks would like to know this!
Michael Wyatt: In fact, what is actually causing these under-funding issues is lavish over-spending on overly generous local government pension plans and salary increases; funding local and state raises and bonuses… over-spending on overly robust health coverage plans, vacation benefits, and retirement-pension plans. As well as over-spending on special interest projects and massive special interest public works, don’t forget that!
Property Tax Transfer: And killing the California real estate market… Is there any validity to this at all?
Michael Wyatt: None.
Property Tax Transfer: Any truth to all that verbiage about Prop 13, and home owners’ ability to transfer parents property taxes, adversely affecting ownership of real estate in California…?
Michael Wyatt: Zero.
Property Tax Transfer: (Laughter) Zero!
Michael Wyatt: Zero! Proposition 13 is not adversely affecting ownership of real estate… Not killing the real estate market in California. It helps the real estate market, not hurts it! Did those opponents and critics of Prop 13 ever hear about the building of new homes and condos in Los Angeles… in the Bay area… in a thousand other locations in California? There is no truth to that argument whatsoever. Zero truth to that position.
Property Tax Transfer: Zero truth… That’s incredible.
Michael Wyatt: Zero!!
Property Tax Transfer: Thank you sir, for a terrific interview. And eye opening analysis of real property inheritance, Prop 13, Prop 58 – trust lenders; and the art of trust loans throughout the state of California.
Michael Wyatt: Thank you, sir. It’s been a pleasure.
Looking at a few cases the Michael Wyatt Consulting Firm has worked recently, gives us a clear overall idea of how the Proposition 13 low property tax base and Proposition 58 property tax transfer and trust loans profoundly affect both home owners and business owners in the state of California – such as:
The Los Angeles County Power Center case, which reduced the Tax Assessor’s value by nearly $22 million, resulting in $232,000 in total refunds. The firm’s Orange County Self-Storage Facility case reduced over $18 million in Assessor’s value, resulting in $185,500 in total refunds. The firm’s work for a Los Angeles movie theater reduced the local Tax Assessor’s assessment by over $12 Million, resulting in a total refund of over $129,000.
The firm’s Orange County Retail Center case lowered the local Assessor’s valuation by $11 Million – generating over $113,000 in total refunds. Just a few examples, like these, show us the enormous potential beneficiaries inheriting California property from parents actually have, in terms of saving a great deal of money every year in property taxes, due to Prop 13 – as well as the stable Proposition 58 driven ability to equalize cash payments to co-beneficiaries during real property buyouts, with trust loans. Plus many other lesser known but meaningful benefits.
When beneficiaries have an opportunity to avoid property tax reassessment, while inheriting property taxes during property tax transfer – typically as middle class or upper middle class California based residential and commercial or industrial property owners – and one has the ability keep parents property taxes – one can transfer parents property taxes over to inherited property; which features parent to child transfer, commonly known as parent to child exclusion. Hence, one retains parents (Proposition 58) or grandparents (Proposition 193) low tax base during property tax transfer… basically forever.
The fact that our property taxes then remain at the low California Proposition 13 tax base that our parents had generally makes a significant difference to our life. Financial stress from unpredictable, and often unaffordable, tax rates are lifted off our back. Tax rates that would be in the tens of thousands of dollars every year, were it not for CA Proposition 13 tax relief, and Proposition 58 property tax transfer benefits.
For assistance with California property tax issues or to take advantage of California Proposition 58, Michael Wyatt can be contacted at (951) 264-6152. You can reach the Commercial Loan Corporation at (877) 464-1066; or simply go to https://cloanc.com with questions on a loan to a trust, irrevocable trust, or a property in probate plus numerous other related issues.