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What do you know about a 1031 Tax Deferred Exchange?
You would like to keep your old home as a rental, but what about the taxes in the
future? Perhaps you can sell your old home in the future and trade up and defer
capital gains taxes to a time when the impact won't be so heavy. There are
professional services to assist you with this process. Let me share my experience
and knowledge on this subject. Consult your tax and financial advisor about the
benefits to you. If you are in need of professional tax advice, I can help with
recommendations.
Did you know that Real Property transfers between parents and children
and grandparent to grandchild can be excluded from reassessment?
That means your child or grandchild can inherit or buy your property and keep your
property tax base. Consult your estate attorney, tax advisor, or accountant and
contact the County Assessor's office by e-mail or online and inquire about CA
Propositions 58 and 193.
Have you consulted your legal or financial advisor on the tax consequences
of title as Joint Tenants versus Community Property with Right of
Survivorship?
How you choose to vest your Real Property could have considerable tax and
inheritance consequences and should be driven by how you want your property
inherited. How you take title can impact the cost to your beneficiaries and who will
benefit. You should always consult an estate planning attorney or qualified
professional. The laws have been revised in the recent past to include “Community
Property with Right of Survivorship” which could change tax consequences for a
surviving spouse. If you don’t have an estate planning professional to consult, I can
help with recommendations.
A Special Real Estate Exemption for Capital Gains Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the
sale of a home is exempt from taxation if A.) You have lived in the home as your
principal residence for two out of the last five years, and B.) You have not sold or
exchanged another home during the two years preceding the sale.
A Special Real Estate Exemption for Capital Gains Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the
sale of a home is exempt from taxation if A.) You have lived in the home as your
principal residence for two out of the last five years, and B.) You have not sold or
exchanged another home during the two years preceding the sale. In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost
basis. Capital Gains = Selling Price - Adjusted Cost Basis Adjusted Cost Basis = Original Purchase Price + Adjustments
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