Proposition 19 April 2021

Selling Your Home - Property Taxes

Prop-19 April 2021

Prop-19 changes property taxes for people that are looking to move and keep their current property tax bill.  If you are over 55 you can sell your current residence and move anywhere in California and bring your property taxes with you.  This can be a huge benefit to people that have lived in there home for a long time and have low property taxes.  Let's say they have lived in San Jose for 30 years and pay only 1000 a year in property taxes.  They can now sell their house for an estimated 1.5 million and move out to Roseville.  Before this proposition passed, this person would be paying around 15,000 a year in taxes, but now they can keep there 1,000 a year tax bill. That is the pro, the con is that your property will be reassessed upon your death.  Whoever inherits your property will have a property that doesn't convey the tax basis.  That 1,000 a year tax bill just went up to 15,000.  It's likely that most people who inherit a property, will not be able to afford to keep it as an investment.  We're yet to see this play out, it's all too soon.  I think the high end market in Roseville, Granite Bay and El Dorado Hills will see in increase of value with this tax incentive for people to move.

Where can I learn more about appealing my property taxes?
Contact your local tax assessor's office to see what procedures to follow to appeal your property tax assessment. You may be able to appeal your assessment informally.   Mostly likely, however, you will have to go through a formal tax-appeal processes, which begin with an appeal filed with the appropriate assessment appeals board.  The state can only raise your property taxes by 2% every year.

How is a home's value determined?
You have several ways to determine the value of a home. An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $550 for a $250,000 house. A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. I am happy to give you a free estimate of your homes value on the open market and do a complete breakdown of costs so you see in black and white your NET.  

Are taxes on second homes deductible?
Mortgage interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics.  Looking into doing a 1031 exchange is often a good idea if you're looking to sell off an income property.  I would with investors and IPX Exchange.  Moving your assets from one property to another is a way to avoid paying taxes on a property in Placer County.

How do property taxes work?
Property taxes are what most homeowners in the United States pay for the privilege of owning a piece of real estate, on average 1.5 percent of the property's current market value. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas.

Are property taxes deductible?
Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.

What is an impound account?
An impound account is a trust account established by the lender to hold money to pay for real estate taxes, and mortgage and homeowners insurance premiums as they are received each month.
Re/Max Gold - Chad Phillips  (916) 390-1476
Re/Max Gold - Chad Phillips (916) 390-1476
2998 Douglas Blvd., #125 Roseville CA 95661