Proposition 19 How it Affects Rental Property скачать в хорошем качестве

Proposition 19 How it Affects Rental Property

Inherited rental or investment property will be reassessed to the current market value under Proposition 19. A common example is mom bought the home in 1963 for $30,000, and eventually rented it out. Her property taxes are low, let’s say $2000 a year. At some point she decided to rent out the home. While she is still alive that old low tax rate stays with the house. Let’s say the house is in Pleasanton and us worth $1.5 million today. When she passes away her heirs inherit the home. Under Prop. 19, that old, low tax rate goes away and the county will reassess the property. Using this very realistic example, the property taxes will go up from $2000 a year to $15,000 a year, based on a 1% value assessment. This is significant and it’s affects on estate planning should be discussed with your CPA or financial/legal representative.