Not to over indulge in generalizations, however when you consider the Proposition 58 tax break, or Proposition 58 property transfer tax relief, in simple human terms, you can clearly see how this type of tax relief allows concerned middle class parents, many of whom without this tax relief would frequently not be able to afford to maintain homes in addition to their own primary property, enabling their young adult children to reside in a safe neighborhood, often nearby; frequently giving middle aged and elderly parents a great deal of peace of mind.
Due to Proposition 58 property transfer tax relief, parents are also able to transfer a primary residence, or perhaps other properties they may own, to their children – without their property being reassessed at market value for state taxation purposes. Obviously, the difference between having this type of tax relief to take advantage of, as in California; or not having it, as in most other states – can be quite significant.
Click here to look further into details regarding Proposition 58, parent to child transfer, and avoiding property tax reassessment |
A home in California that is owned and maintained by the same family over decades, transferred to offspring… is generally assessed at a fraction of the current value of the house and land. This typically makes it possible for young adult, and older adult, children of middle class parents, to raise their own children in a safe middle class environment, as well as saving thousands if not tens of thousands of dollars per year.
The type of key financial support that Proposition 13 and Proposition 58 afford home-owning families in California, often helps to keep a tight knit family closer together, to choose to live nearby as opposed to settling for a less expensive and less desirable dwelling, often far away from family. As we often have noticed, multiple home ownership by doting parents often reveal homes that are near each other — thereby preserving an even tighter family bonding fabric, while establishing a safe environment for the parents’ grandchildren to grow up in.
Whereas if children, and grandchildren did not have this form of tax relief enabled by Proposition 13 and Proposition 58, allowing property transfers without crippling property tax increases – they very well may have had to settle for a less attractive, less safe neighborhood, often far away from the parents, and often exposing children to less desirable elements, and school systems.
The most popular, or well known, scenarios affecting peoples’ lives directly in California; qualifying homeowners for a Proposition 58 tax exclusion, including the transfer of real property:
(a) from parents to children;
(b) from children to parents, as individuals;
(c) from grandparents to grandchildren as individuals;
(d) between joint tenants;
(e) from trusts to individuals;
(f) from individuals to trusts.
(g) to or from any child born of the same parent(s);
(h) to or from any step-child, any son-in-law or daughter-in-law; or any child who was adopted prior to age 18.
Naturally, the most popular scenarios enabling qualification for “property exclusion” include property transfer by inheritance, by gifting, or by sale.
Pingback: Irrevocable Trust Loans - Commercial Loan Corp, Provider of Trust Loans, Estate Loans and Probate LoansCommercial Loan Corp, Provider of Trust Loans, Estate Loans and Probate Loans
Pingback: To Keep Parents Property Taxes - Transferring Property TaxesTransferring Property Taxes
Pingback: To Keep Parents Property Taxes - California Property Tax NewsCalifornia Property Tax News