My dad purchased a $100,000 home in California for more than 20 years ago. The market value of the house has increased to be 400,000; however, he continues to pay property tax on a 100,000 house. If I inherited the property, do i have to pay a property tax of a house worth 100,000 or 400,000?
2006-09-13 13:19:24 · 5 answers · asked by infinitig35orm6 1 in Business & Finance ➔ Taxes ➔ United States
You are in luck!
The transfer of the principal place of residence between parents and children (and the transfer of up to $1 million of any other real property between parents and children) is excluded from California property reappraisal if an application is timely filed. Transfers between grandparents and grandchildren may also be excluded from reappraisal when both parents of the grandchild are deceased. However, a son-in-law or daughter-in-law of the grandparent that is a stepparent to the grandchild need not be deceased. Some restrictions apply, please contact our office for additional information.
I have attached two links below. You can check the county assessor for your county. Make sure you file the application to be excluded from reappraisal on a timely basis. Many counties will send out a questionnaire to when they see the change of ownership filed with the county. On the questionnaire, just respond that the property was inherited from your father.
Caution - For income tax purposes, it is better to inherit property than to have it gifted to you. If you inherit property, your cost in computing gain, if you were to sell the property, is the value when inherited. If the property is gifted to you, your cost is your father's cost and because the property has appreciated, you will have substantial gain.
2006-09-13 13:41:00 · answer #1 · answered by TaxMan 3 · 0⤊ 0⤋
once you inherit belongings you get a stepped up foundation. meaning that on the 2d you inherit you haven't any longer any capital benefit. in case you intend on advertising the valuables interior of 6 to 365 days after taking call you probable will have no capital benefit except there became an surprisingly great develop interior the valuables's fee throughout the time of that ingredient. once you sell the valuables you plenty do as you like with the money. there is no time cut back for reinvestment and you do no longer could save it in any particular account.
2016-11-07 06:45:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Check to see if he has claimed some kind of old-age tax exemption. If he has, it is possible that you will have to pay all unpaid back taxes if you want to keep the house after he kicks the bucket + the taxes on a house now worth 400,000. It is possible that you will have to walk away because the deferred taxes owed is more than the house is worth to you.
2006-09-13 13:30:00 · answer #3 · answered by waplambadoobatawhopbamboo 5 · 0⤊ 1⤋
Taxman is right. Your father's base value of $100,000 passes to you when you inherit it because of proposition 58. Be sure to apply for it and fill the proper paperwork out because it will not be automatically given to you.
2006-09-15 11:19:04 · answer #4 · answered by iinakamura 2 · 0⤊ 0⤋
What's the assessed value? market value and assessed value are two different things.
2006-09-13 13:22:49 · answer #5 · answered by Anonymous · 0⤊ 1⤋