Question for all you Real Estate / Title gurus

[totenhosen]

My parents recently sold their home in CA. They purchased a new residence in AZ. They did not grandfather their property tax to CA for obvious reasons.
Now is there a way for me to purchase a home in CA and somehow apply the grandfathered property tax rate to it? Would they have to purchase the property in their name, or can I purchase it in my name and title it in theirs to get the tax rate. Or do we have to have them purchase it and than later on gift it or sell it to me? I assume there would be tax implications with this as well.
I'm looking to step up to a bigger property and obviously this could save me thousands per year.

[totenhosen]

anyone?

[al cole'holic]

If it is a separate residence entirely you are out of luck, and if they sold the house they had for years and years it is bye bye :frown:

[BrendellaJet]

I dont beleive you will be able to get the rate with you owning the house. You need to be older than 55. Gifting it isn't a good idea as you get into estate planning mess with your parents potentially paying a ton in tax before they die. They'd have to buy the house and let you live there-you'll need to measure the property tax savings and compare the loss in the mortgage interest deduction- Im not certain but I think you can keep the property tax assessment when you inherit the property-could be wrong though. Ill check it out.

[BrendellaJet]

confirmed, property transfers due to inheritance are not re-asessed in California as long as there is a "close relationship" between the decedent and the person inheriting the property, in this case you should be okay...Check it out with your attorney though before you pursue...

[totenhosen]

If it is a separate residence entirely you are out of luck, and if they sold the house they had for years and years it is bye bye :frown:
No, you have two years to do it unless the law changed recently

[totenhosen]

confirmed, property transfers due to inheritance are not re-asessed in California as long as there is a "close relationship" between the decedent and the person inheriting the property, in this case you should be okay...Check it out with your attorney though before you pursue...
You can transfer property tax rate through a sale of a property as well if it is a close relationship. I'm jsut trying to avoid the fees/costs in doing so and wanted to see if anyone knew of a good way to structure it.

[al cole'holic]

No, you have two years to do it unless the law changed recently
I don't think there was ever a law that said you have 2 years for anything that had to do with property tax...???

[totenhosen]

I don't think there was ever a law that said you have 2 years for anything that had to do with property tax...???
I was told it was a property tax law (State of CA) that allows a person over the age of 55 who sell their primary residence to purchase another home within the two year period and they can grandfather their current tax rate to the new home. The law only pertains to certain counties which are perceived to have high home price costs such as LA and SD.

[totenhosen]

I don't think there was ever a law that said you have 2 years for anything that had to do with property tax...???
Here is the specific law:
I'm planning to move to a new home. Can I take my Prop. 13 tax base to my new residence?
Yes, if you are staying within the same county. Maybe, if you are moving across county lines.
Proposition 60, approved by California voters in 1986, allows seniors age 55 and older to transfer the base year value of their home when they sell that home and buy another of equal or lesser value in the same county, and meet other conditions specified in the law.
The following conditions must be met for tax relief to be granted under Prop. 60 (Revenue & Taxation Code Section 69.5):
Both properties must be located in the same county and be eligible for the Homeowner's Exemption.
You must be at least 55 years of age.
The replacement dwelling must be of equal or lesser value (sales price) than the original property.
The replacement dwelling must have been acquired or newly constructed on or after November 6, 1986, and within two years of the sale of the original property.
Proposition 90, approved by California voters in 1988, extends the transfer of assessed valuation to moves into other counties within the state. However, each county's Board of Supervisors must pass an ordinance adopting the provisions of Prop. 90 for it to become effective in that county. Only 13 counties adopted Prop. 90, and four of them have since repealed their ordinance or allowed it to expire.
As of November of 2000, the State Board of Equalization reported 10 counties still accepting Prop. 90 transfers. They are: Alameda, Kern, Los Angeles, Modoc, Orange, San Diego, San Mateo, Santa Clara, and Ventura.
Please be aware that the County Supervisors can repeal their Prop. 90 ordinance at any time, so it is imperative that you check with the Board of Supervisors and County Assessor's office in the county in which you plan to relocate before selling your present home and buying a new one.
Also note that this is a one-time exemption. The claimant and/or claimant's spouse or any co-owner must not previously have been granted the property tax relief provided by Section 69.5 of the Revenue and Taxation Code.
Even if you do not qualify for the Prop. 60 or Prop. 90 tax break, you are still protected by Proposition 13, which limits your property tax to 1% of the assessed value established at the time of purchase, and limits increases in the assessed value to no more than 2% each year as long as you own the property

[al cole'holic]

I guess if my grandparents found a home in Simi Valley right now for $17k then they could qualify....??

[BrendellaJet]

You can transfer property tax rate through a sale of a property as well if it is a close relationship. I'm jsut trying to avoid the fees/costs in doing so and wanted to see if anyone knew of a good way to structure it.
The person selling the home can transfer. You are not that person in the original question. The only way for you to get their property tax rate is for you to inherit a home they buy in California 2 years after the sale of their last home in California...

[totenhosen]

The person selling the home can transfer. You are not that person in the original question. The only way for you to get their property tax rate is for you to inherit a home they buy in California 2 years after the sale of their last home in California...
Not entirely true. My brother purchased one of my parents rental properties and the tax rate was also grandfathered to him so I know it can be done.
Worst case scenario I guess I have to have my parents buy a place and than I'll purchase it off of them or be put on title as co-owner with right of surviorship or place in a living trust.
Thing is I want to be the person. Got to think outside of the box and get creative (legally of course). But I guess no one seems to have experience with it.

[NorCal Gameshow]

I believe the law was put in so older people with no kids would buy down(smaller) and free up larger houses. if your brother used it ,that might be the one time for your parents...
"Also note that this is a one-time exemption. The claimant and/or claimant's spouse or any co-owner must not previously have been granted the property tax relief provided by Section 69.5 of the Revenue and Taxation Code."

[totenhosen]

I believe the law was put in so older people with no kids would buy down(smaller) and free up larger houses. if your brother used it ,that might be the one time for your parents...
"Also note that this is a one-time exemption. The claimant and/or claimant's spouse or any co-owner must not previously have been granted the property tax relief provided by Section 69.5 of the Revenue and Taxation Code."
That wasn't the case at that time as they were not yet 55 and it had nothing to do with my parents than purchasing another property.

[locogringo]

I'll check into this more, but I would look down this venue also:
place it in a in-vitros land trust with your parents being the settlor's with you being a 90% beneficiary on the house. Title remains in their name but the home is technically yours and you get all the tax write offs etc. A due on sale clause, if there is an existent mortgage with your parents, cannot be called by the mortgage company either.

[Mandelon]

I'll check into this more, but I would look down this venue also:
place it in a in-vitros land trust with your parents being the settlor's with you being a 90% beneficiary on the house. Title remains in their name but the home is technically yours and you get all the tax write offs etc. A due on sale clause, if there is an existent mortgage with your parents, cannot be called by the mortgage company either.
Then invest the extra $$ in one of those guaranteed 10% return funds... :hammerhea

[totenhosen]

I'll check into this more, but I would look down this venue also:
place it in a in-vitros land trust with your parents being the settlor's with you being a 90% beneficiary on the house. Title remains in their name but the home is technically yours and you get all the tax write offs etc. A due on sale clause, if there is an existent mortgage with your parents, cannot be called by the mortgage company either.
Thanks, this is what I was looking for. So would the loan have to be in their name as well?

[totenhosen]

bump to threa to show my new signature. Now only if I could get it to be my avatar.

[locogringo]

Thanks, this is what I was looking for. So would the loan have to be in their name as well?
yes with you as a resident beneficiary. Just proof-read my last post and it is actually a inter-vivos land trust.
Cheerio