The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
For you to grow your portfolio in today's market, you really need to be coachable and willing to get off your high horses. I for example, have managed to grow mine from $150k to 300% of my initial deposit within the past 16 months just by copying trades from a broker that has better skillset and technical know-how than me.
@@LucasBenjamin-hv7sk talking about coaching, do u consider anyone worthy for recommendations? I have about $280k to taste the waters now that large cap stocks are at a discount... thanks
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Annette Marie Holt turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
It's not unrealized ... the inheritors gained a property that they didn't previously own. Why should those that inherit property maintain a low property tax basis if they don't live in it as their home. It's an investment property if they don't live in it.
@@RichFlemingRealtor It is unrealized because many times I've seen properties sell below the assessed value. Unrealized gain means you own something but you haven't sold it. You're the kind of person who thinks people should pay taxes on unrealized stock gains just because those people may or may not receive a dividend.
we bought our house in 2012 when the market was at rock bottom for 298k. Fast forward to 2021 and our house was worth roughly 830k. Thank God for prop 13.
Sacramento will never have enough of your money. Every time they raise taxes, the people that pay taxes leave and are replaced by people that don't pay taxes, so they raise taxes again.
@@harmgregory4560 How would you explain the massive budget deficit? I think the top 20% of the people in California pay about 80% of all the taxes and they are leaving. Would you stay when Sacramento starts talking about a wealth tax? Or taxing you after you have left the state?
@@harmgregory4560 - He didn't say that ALL of the people in the top 20% are leaving along with the 80% of taxes that they pay. He said that the people that are leaving are part of that top 20%, and the people moving in are not paying sufficient taxes to replace what was lost.
Check before doing anything to the title of the property. It may trigger a reassessment of some kind. Check with the county assessors office. You could avoid a nasty surprise.
we pay enough ive lived here all my life and if my property taxes go up there will be a lot more people moving out of state like myself . we need to end this bullshit and get rid of Gavin , what always got me was everyone votes on such a thing but the only ones that pay is the people that own houses but ignorance goes far because the people that rent their rent will go up !
yep. You nailed it. The worst part is all the property tax money goes to our woke public school system that we didn't even use as we home schooled to shield our children from it.
@@Bakapooru It was never supposed to exist. See, this is where Americans go off the rails into the dense forest of Big Overbearing Government Overreach. 💡🤔 The more the government taxes the people, the harder the people have to work in order to keep up. Sounds like what lead to The Boston Tea Party. There isn't any wealth accumulation occuring. In many instances Americans are literally losing the family farm. That means we're becoming Surfs in America. Tell me... How many in our Political Class are broke/poor/struggling? Here I'll help you out... NONE 😕
Prop 13 has been law in California for over 40 years and for the past 20+ years our state politicians have been trying to whittle it away. Why? Because this state’s politicians spend too much and there are a lot of people who aren’t paying ANY taxes in this state. Too much spending and not enough people paying has directly lead to our $73 BILLION dollar budget deficit.
@@cryptojuan5897 You have to remember that people who have been paying property taxes for 20, 30, 40+ years paid for a lot of the infrastructure that new homeowners are currently enjoying like fire stations, police stations, public hospitals, roads, bridges, etc… They once paid top rate property taxes, but now that they’re getting older and their income is no longer rising their property tax burden isn’t top level. You could say that it’s not fair that new homeowners are enjoying these things right now, but they haven’t paid that much into the system yet. It doesn’t matter how popular a politician is. If they try to repel Prop 13 they’re going to be immediately voted out of office.
Modern "Schools" are nothing more than Indoctrination Centers to push LGBTQFD Agenda, climate change (BS) agenda, and other BS like teaching them that Our Founding Fathers were "Extremists". Dumb & Woke are the result.
I signed the petition. I only heard about it on a radio commercial. Everyone I talked to about it had no idea about it. I had my GF make a facebook post about it because she has hundreds of "friends". Nobody seemed to give a crap, and I doubt they got anywhere near the number of signatures they needed. I have no idea what came of it.
The Howard Jarvis Taxpayers Association tried to get enough signatures to put a repeal on the ballot for a 2nd time. They didn’t get enough.😢 If they try again, SIGN IT!! And circulate it to every registered voter in California you know!
Owning a home is the biggest scam, you never own it because you have to pay on it for the rest of ownership and like any landlord the government can raise your rent. The real problem is that the well healed folks can get out of most taxes with a good lawyer. I knew a coke dealer in the 80's saw him a few months ago and he was still rolling around in cash, one of his tricks was to start a church and have the church own everything he wants to have, no income taxes and no property taxes.. He also mentioned a graveyard as a property tax loophole..
Spoken like some clueless person who never owned a home. 😂😂 My home has nearly tripled in value. When I retire I can sell my home at a huge profit. That opens the door to many possibilities for my life in retirement.
@@joeg9478 Sure your home goes up in value, indeed it does but what you pay over that amount of time almost always exceeds any added value in its inflation.. Incidentally I have owned many homes and continue to do so, and they are at best a savings account compared to other investment instruments. Take bonds for an example. If you invested a $1000. each month for 10 years that would be a $120,000 in principle, depending on the interest rate you would get $3000. to $6000. in interest per month, with the interest paid on those bonds you could buy another $120,000. in bonds and live on that for the rest of your life tax free as Federal and state or municipal bonds are tax free.. If you continued to invest in bonds over 30 years the profits would greatly outpace your homes value over the same period. Peasants and simpletons buy homes because the system has convinced you to do so while not even doing the math on the investment.
So you're a non homeowner who considers paying property taxes a scam and knew a coke dealer. Yeah, that tracks. BTW, pretty sure the well HEELED folks use a tax professional, not a lawyer.
@@harlanjackson6112 Well I am pretty sure the well heeled use a tax attorney, and a accountant. I am a home owner. Been paying property taxes on home(s) for over 35 years. I happen to be a person who has kept every receipt and know the actual cost of ownership over 30 years. Sheep just believe everything they're told and don't bother to do the math..
@@TheRealCheckmate Precisely why I said it opens the door to many possibilities. You never heard of retirees selling their home and moving somewhere with a lower cost-of-living and a slower pace of life? I could move to a tropical paradise like Bali or Costa Rica and thoroughly enjoy the fruits of my investment. And of course it all depends on where you live on how much your house appreciates. I live in Southern California four blocks from the beach. Now compare that to Tuscaloosa, Alabama where I'm sure a house will barely see any appreciation. You certainly don't agree with the previous posters comment?
I think you mischaracterized the limitation on assessment before Prop 19. It was Prop 58 which followed Prop 13 that shielded the entire value of the parent's principle residence, plus another $1M in real estate, from reassessment. What transpired under Prop 19 motivated by the self-interest of the realtor was accurately explained - and despicably deceptive I might add.
If you can't stand on the land you own free and clear you are a slave. Property should be taxed ONE time at purchase. Whether 10, 15, or 20% to be paid like any other loan with an eventual end. Better to raise sales taxes. Then counties governments number one goal will be to create a prosperous economic environment so they get their chunk of cheddar. Otherwise anytime you have your properties teat exposed to public sector unions ability to suck you have recreated the feudal system. Oh and privatize the schools, they are just administration parking places at the trough.
When i bought my house in California, the property tax went up 70% from what the previous owner paid. Then, every year for the 15 years I lived there the taxes were increased by the maximum allowed by the Prop 13 limitation on tax increases. In the neighborhood where I used to live, homeowners are now paying more than $1000 per MONTH in property taxes. Get out of there while you still can.
Unfortunately, this is sort of a double-edged sword. On the one hand, yes, your property taxes went up 2% per year, every year. On the other hand, your property value likely rose by at least double or triple that each year, every year on average. While, yes, you cannot necessarily "do" anything with that appreciation without either selling the property or borrowing against it, but your asset's value - the property value - is increasing faster than the government can tax you on it. All of this, in my opinion, encourages people to hold on to property for as long as possible, disincentivizes development in the area (as in more housing) and thus you have the recipe for the situation California is in - too many people trying to live here yet not enough housing stock forcing the price of housing to increase as more dollars are chasing fewer products, thus incentivizing holding property and so on until you have a situation where the state is offering what is essentially a lien on your house to borrow the down payment to buy a house where you're going to also borrow just to finance the rest of the purchase, and this program runs out of money within hours of opening it because people are just so desperate to buy a house. Anyway, rant over.
@@bethellawif we had it your way, older people would be taxed out onto the street because their savings isn’t outpacing the rampaging inflation. And I’m already looking at having to work for the rest of my life just to pay for my property taxes and mortgage. Sad.
GARBAGE (for GARBAGE) is now “taxable” property fees whether you have garbage or not, where house was burned down or not, whether it’s vacant or not, whether it’s renovated or not, whether you need only 1 can or nothing not 3, etc., SCAM by thieves
@@jamesdewer thieves robbing everybody in broad day light - houses vacant for years no garbage but they are looting money & refusing to refund it, houses in construction no garbage & debris removal is payable separately, houses burned down no garbage, occupied houses depends on people either very little to no garbage to more garbage with more occupants, senior discount robbing anyway & refusing to refund it, 1 trash can is not $450-$479/year & growing by 3% annually, looting recyclable, selling & yet want to be paid for taking it by force, same with greens composted but charged by force for nothing, not removing any trash or anything looting money anyway under the threat of property lien. These thieves & criminals can not be any more criminal until the next SCAM they will come up with. Which is right here proposition #1 with $6-$7B price tag attached to loot “for homeless.” Looting taxpayers money together with homeless who are refusing to live by the rules like most people in homes with bills to pay not on the streets or beaches for free & pockets full of money from the aka government = taxpayers. These in charge pocketing even more & looking for more homeless because “what are we going to do without homeless?” Need money & “job security” - WAKE up everybody to this looting BS SCAM!
@@cabot100 “garbage pick up” is not the same as using “garbage pick up as SCAM” to loot MONEY! In normal places garbage pick up fees are as normal as 1+1=2 and cost is $140/year not ARBITRARILY DEMANDED/ESTABLISGED IN SCAM $450/year + 3% increase annually after. In normal places you can have 1 can or 2 or 3 or 4 if you need that many and pay accordingly. In normal places you can & need to haul your own garbage to designated garbage field for FREE. In normal places you have senior discount & you have it as stated. That’s in California too in other normal cities & locations without mafia. We don’t need to look into definitions to know what SCAM & FRAUD is, or mafia, do we? That’s just the part of the SCAM! Here is more to prove it! (something else like conspiracy to DEFRAUD) Property has nothing to do with garbage, property generates no garbage, people do. It’s a service, period! Property must be occupied by humans to generate garbage (food containers, cleaning, pets, etc.,) - properties are vacant (FRAUD & SCAM) for years & there is no garbage but fees are charged & money looted, properties are burned down & homes no longer exist & no garbage, properties being fixed up & renovated & any debris are removed separately & paid for separately not as garbage, properties are vocational homes or second homes occupied occasionally without garbage removal for the most time but money looted, etc., ITS A SERVICE that might or might not be in use & it’s a SCAM & FRAUD! Here is the 3rd part of the problem - It’s a THEFT by FORCE. “One man garbage it’s another man treasure” my “garbage” RECYCLABLE it’s my MONEY & my property which I have a right to SELL it myself for my own money or donate NOT being EXTORTED to give it away by force, pay for being extorted & they will SELL IT on the top of it all & double down on SCAM & FRAUD.
People are not “hoarding” homes. If someone owns multiple homes they are renting the others which is a home/shelter for the renter. Also average home ownership is 14 years across the country and most on inland CA is less than than that and your urban coastal CA areas are similar to the national average so the argument that Prop 13 is causing a housing issue is total BS. How about controlling the border so population will stabilize and we can build for citizens without destroying neighborhoods of single family home ownership for corporations owned high rise rental properties since CA does not have zoning protection for single family homes or parking regulations.
Anything to divert responsibility from the elected officials while soaking the taxpayers. Why people continue to vote for this nonsense is beyond me...
@BethelLaw as an old tax guy I love your videos. It clears up some stuff I didn’t know about. But I do need to know about for my kids and grandkids as we’re getting to set up a trust. But I am getting ready to buy a parcel for a vacation property. Probably just a piece of land in the mountains we can use for vacation or maybe build a cabin someday. I wish you would do a video on the tax implications and inheritance of a second property to kids from parents. And the best way to do that. Thank you much, sir. Appreciate you from an over. Retired vet🇺🇸
prop 19 had some good in it the problem was they sold the people with just part of the propaganda and left out the fine print of the death tax. Thank you Newsom😢
The government needs to get their hand out of our family cookie jar and what we worked to own. They own everything else, so they need to fall off. I'm still mad about having to buy a permit to visit the forrest that our taxes are supposed to maintain and keep open for us for free. $15 just to park your car anyplace we already paid for to use. This is cruel. PEOPLE BEFORE PROFFIT.
Just added myself to your mailing list. I hope to set up a meeting soon. I have an autistic child and I wish to ensure she is protected from this world.
Why is Tax law not subject to "Expo-Facto"? As an example, if I don't like 5-bedroom homes and I get control of the "Ballot Process" such that I get an initiative passed saying they must be taxed at twice the rate as a house with fewer bedrooms then in effect I could force property owners to have to sell. My point being that buying a principal residence is considered a 30-year investment at current financial conditions, but by changing laws that stability (and ability) goes out the window. This is disruptive taxation!
In Caldor fire of 2021 I lost principle res. in Eldorado County of 25 years. Insurance enabled purchase of replacement principle res. in Mono county Dec. '21. I did not sell burnt out lot in Eldo County and was told I needed to do so ( 2yrs after purchasing @Mono Co.) in order to qualify for prop. 19.
I have lived in my house in California for 38 years. I was married for 40 years and my husband passed away in 2012. If we would have sold this house in 2012, prior to his passing, we would have had $250 ea or $500 total before tax assessment on sale, correct? I think after so many years of marriage and filing joint tax, a widow/widower should be able to have a higher credit than a single owner, I also think there should be an income tax deduction for widow/widower, not from married filing joint back to single. You need dependents to claim head of household.
I left california in 2020 At the age of 55.. Is sold my house for 960,000. 2400 sq ft And a crowded neighborhood.. I moved to the state of tennessee no state income tax Purchased a house between nashville and memphis for 640,000. 5500 sq ft on 8 acres and 4000 sq ft shop. You can still purchase a very nice house for 350,000 today here
I got screwed when they passed Proposition 19 in 2020. My grandmother passed away and left her house. My dad and aunt were on the title. My aunt wanted out to move to Idaho, so I purchased her half of the house, leaving my dad on the title and adding my name. The taxes went up from $1,700 to $8,000 a year, even though the house remained in the family. I plan on obtaining a reverse mortgage when I reach age 62. This will require me to remove my father's name from the title and only mine remains. But because of Prop 19, even though I am not selling the home and only removing my father's name from the title, California will raise my property tax to $16,000 a year. The home is my residence.
I think property 13 passed by my parents kept allot of families in homes that they would have been booted from without. Prop 19 seems like they are attempting to get rid of the multiple home transfers. Government can always spend more of your money.
Because of ballot harvesting and election fraud in California... There is no hope. The communists are in full, permanent control. All of the smart money is planning to leave.
I really get tired of Realtor associations supporting things like this. Yes, not only would it increase the number of properties to sell but many would also be a lot more valuable today so it was very self-serving of Realtors to support this Proposition. I was a CA native but moved 15 years ago and work in the RE industry in another state. I still sometimes butt heads with RE associations who want to support political actions that they say well help consumers but actually help Realtors more. But, in California, it's obvious that a home that was purchased decades ago for $50,000 will generate a wonderful commission when sold at over $1 million today since they won't have to wait for another generation to sell it.
Terrific video. It was very easy to understand the concepts and answered many questions I had top of mind. The most helpful part (although I didn't like the answer) were the details regarding requirements for children to use the home as their primary residence to maintain the older assessment. It's a bummer that - once they no longer claim it as their primary residence, even if after many years of living there - the taxes are re-assed. I sure hope prop 19 gets repealed in the next election.
I'm tired of the insane amount I'm paying to LA County for a tiny condo I bought 10 years ago. It just keeps going up. Of course anyone renting their units is forced to increase rent.
So, married couple live in home 35 years. Dad passes on, a 45 year old son disabled since childhood moves in, lives with mom, years later mom passes on, the son inherits the property, the tax base stays the same for the son until he sells it.
I think it's simple to prevent home hoarding, and that's not their real goal. They don't want any family to be able to build wealth through generations.
Didn’t realize taxes were something that was supposed to be in the front of your mind taking up head space all the time. I mean, really, is this really what a good govt does to its citizens? Isn’t there a way to incentivize the rich not to hoard property without making the rest of us poor?
High property tax should be levied ONLY on investment properties, not your primary home. After all, too many investment properties had caused the housing bubble that drove many people into the streets and prevent many others from ever owning a home to live in. Also rent now exceeds 40% of people's income. Tax investment properties at point of sale and use those tax dollars to help offset housing prices for local buyers. Hey, whoever breaks it, needs to fix it!
In NY we have the opposite system - the county assessor has full authority to reprice homes to market, so it's not uncommon to pay $12,000 a year in property taxes only to have it increase by 5, 10, even 15% the following year, also does not matter if you purchased the home or inherited it, same rules apply.
That's typical of all Loser States run by corrupt politicians that have no interest in keeping you financially in tact. They are like a Money Sponge that can never get enough of your hard earned money.
Born and raised in California, and I own my home, which I finally paid off now these bums are gonna come after me for more taxes? we have purchased a plot of land in Idaho and are packing our bags. All we want is to be left alone…..
Property tax is an absolute racket. Assessments NEVER result in you paying less taxes, only the same or more. "Assessing" the real value of your property is something that is never actually done.
My friends mom passed away in 2019. His mom had a trust and she left the house to him. He hired an attorney who didn't do anything for him. By the time he realized there was a problem with the attorney it was too late to claim the parent to child exemption so the property taxes were reassessed and he is now stuck with a large property tax bill. He still hasn't transferred the property from the trust into his name and yet he's stuck with this huge bill because his attorney screwed him over. He finally went to the assessor's office and filed the paperwork for parent to child but was told he would still have to pay the higher taxes that had already been assessed but going forward they would correct the problem. I think they should have to go back and lower the taxes back down to what they should have been but the county is saying no. The property hasn't even officially changed hands so how can they do this to him? He is being overcharged $16,000 in back taxes.
What about TODDs? I filed one in 2020 for my only child. That's the only asset I own besides my bank accounts (PODs) and car. thank you for this video!
NEWS STATIONS ACROSS the US, the county/cities need to be called out with fervor, as well as other municipalities on the egregious abuse by these localities for forcing the elderly to pay Real Estate/Property taxes on their only homes. Worse, some are being fleeced at 100 - 300% real estate over assessments increases in one year!!!. News investigations/stories must be done on this story with urgency as many homeowners, elderly and veterans across the US are losing their homes due to over assessments by their local counties. Everyone must write to their Governors, Senators, Representatives, county officials to stop this fleecing of the elderly.
We bought this house and the County came out to measure it and charged us more. We are growing so bought property w/house for 87k. Now we fear they will ignore our No Trespassing Signs again. How to stop them from going onto our property un-invited? Thanks
What if adult child lives in ADU on the property and has for many years prior to inheriting the full property? If they want to stay and keep the same tax basis, does it work if they are in the ADU vs. primary house?
Great question! The basic answer is that we ignore the ADU, in that the county is looking at whether the child is living on the property or not. They can live in a room inside the house, the garage, a barn, an ADU, whatever. So long as they live on the property - the parcel(s) of land on the deed to the property - then the physical location as to where they live doesn't matter. Now, this answer changes if we have a multi-family housing situation such as a quad-plex. In that case, we still don't care where the child physically resides, the property is still going to be reassessed because it's not a single-family home or a duplex.
What if I die and my kids immediately sell my house as-is? Is it just the $250,000.00 exemption, and capital gains of the rest, or is there some property taxed owed too? This is so confusing that I don't even remember Prop. 19 on the ballot. They are so sneaky.
Interesting description of the nuances of prop 19. IMO, the 2% cap should either have a limit to how undervalued the assessment can get, or be scrapped entirely. This special feature entrenches financial advantages to wealthy families and legacy businesses over young families and new entrepreneurs. Perhaps the property tax rates are too high, but we need to encourage new homebuyers and entrepreneurs rather than start them off at a serious disadvantage.
Property tax is so ridiculous. It largely funds roads, schools, fire etc. So why should it ever go up any faster than inflation? Why should it go up if I remodel the house and it has new wiring etc? Or if I build a new house that is the same size but is very expensive because I used high quality materials and features that drive up the price of construction but make it more energy efficient long term?
Best thing to do is have everybody pay the same fair tax rates. This would insure that housing would go to the most beneficial use. None of this have dieing baby boomers hogging all the housing. If the taxes get to high sell the house or develop it into more than one residence.
Best thing to do is have everybody pay the same fair tax rates. This would insure that housing would go to the most beneficial use. None of this have dieing baby boomers hogging all the housing. If the taxes get to high sell the house or develop it into more than one residence.
Who can even (really) afford a home in California now? And for those that paid $200K many years ago and are expecting 1M or more when you sell (finally) - who can afford to buy it?
My city did the same, cuz I keep up with local laws, I made the thing ugly as all hell, threw dried mudd on it and put a bunch of stuff on the drive way. And sure enough, the bastards reassessed the value and with that, the taxes. I managed to keep the value only 50k over. True, the county can't, but they will and then you have to fight it in court.
What he is referring to is the closing of a construction permit that is not a replacement item(s)and yes that does create a reassessment of the property for the portion of the property that was constructed upon under prop 13.
The real reason properties increase in value is to increase property tax, the house is actually not worth that much. Houses on the coast are also overvalued ignoring tsunami risk for tax purposes.
All of this helps what Carl Schwab said regarding home ownership, "YOU WILL BE HAPPY AND OWN NOTHING". All of this helps the top 5% of this country to own everything.
My grown child lives with me and has been disabled since childhood . He can't afford a huge tax increase , what about joint tenant ? That's what my mom did for me .
If that child lives with you, then no reassessment upon the transfer, whether it be adding them to title now as a joint tenant or through an inheritance. However, I would strongly caution you not to simply add the adult child to the title as a joint tenant. (i) You mentioned they are disabled. In what capacity? Physically or mentally/developmentally? If it's not a physical disability, then you or they may run into a capacity issue where we have someone on title to a house who doesn't have capacity to do something with the property (E.g., sell it). (ii) It would be in their best interest to inherit the property so as to benefit from a stepped-up tax basis which would minimize or avoid capital gains taxes when they sell the property after your death. If you add them to title now, then you transfer over your tax basis and no step-up on the whole of the property at your death. (iii) Joint tenancy is a temporary probate avoidance and only works as to the title owners, no contingency planning if/when one of the owners dies. Thus, a trust is more robust, avoids probate, and can be changed at any point in time. At the very least, do a revocable transfer on death deed.
@@bethellaw Thank you so much , he is brilliant but rather dysfunctional . He would have to have a roomate when I'm gone , to afford the house and bills . Unfortunately I don't have money to do a trust , I had some inheritance , but the 100 year old house needed repair on one side , and I put up some fencing as well .Paying the mortgage and bills and food used the inheritance . That's why i was thinking about joint tenancy . It's very complicated business ..
If you inherit a property and don't live in it as your home, why should you get to keep a low property tax basis going forward? If you're not living in it, it's an investment property.
That’s why my folks deeded the rentals to me before prop 19. Tax base stays the same. Now all I have to do is live there for 2 years as primary resident and get $500k tax exemption.
@@RichFlemingRealtoras long as we own the house for more than 5 years and I live in it for 2 years as primary residence. $500k is tax free. Either way, rental income are great as supplemental retirement income as well.
To clarify, $500,000 is the amount of gain that is exempt from your income taxes if you sell the inherited property after living in it for two out of five years.
Question, if my dad pass in 2012 and I been living in the house before and since. The title has not been transferred to me due to my sisters got mad and sue. That’s done but due to covid and lazy, I still have not done it. How would Pro 19 affect me? Do I own 10 years of Supplement taxes?
Hello @gabu19781. We can certainly offer a free consultation to you and your parents. I don't know if UA-cam will take kindly to us putting our phone number here as a comment, but if you go to our channel page or our website (www. bethellaw .com) then you will be able to reach out and schedule that consultation. Thank you very much for watching!
1) Your opinion on whether taxes should be higher does not matter. The voters ( who are comprised of homeowners and renters) spoke. Perhaps you should put the same restrictions on the governor's spending. There's plenty of taxation money, It's being spent poorly. Do you think rent is high now? Raise the tax structure and see where they go, It will give you something else to complain about. 2) Why buy a condo/house where you're fully aware of the HOA consequences of assessments and then complain about it? Buy a free home with no H o a. there are plenty of them. Again, perhaps our government officials should be better stewards of the money they already take from us.
If you think CA system is bad, come to Texas. The TX system re-appraised your property every year and then tax you between 2.25%-2.9%, averagong out to 2.5% for school, county, city, community college, farm road, municipal utility district, etc... So, if you make $150K per year andlive in a $600K home, you will pay $15,000 per year at 2.5% rate (or $1,250 per month) on top of your mortgage payment. $15,000 tax on a $150,000 salary is basically a 10% state income tax in effect. So when they claim TX has no state income tax, it was in effect a lie. Homestead exemption limits the increase on your house appraisal to 10% (each year) but each taxing authority can raise the tax rate. Thus at a minimum your property tax will go up 10% per year: $15000 for $600K this year, $16500+ for $660K next year. Such are the real horrific tax rip-offs in Texas, taxing on UNREALIZED gains, and practically evicting senior citizens out of the houses they worked all their lives for. Such a crooked system!!!
Our home is in an irrevocable trust uder my husband's name, due to the passing of his father. If we took it out of the trust and put it in his name only, there would not be a srep up in taxes. If we put it in both of our names would that negate the protection?
@12:07 if I give the property away, how is that different than transferring the property to my kid ? If you die and your kid inherits the property the basis gets stepped up, would that mean the assessed value of the house - the basis would be 0 so the difference would be under $1million ?
what if the parent owns multiple properties and a son lives in one of the properties but not the parents primary residence. Under this circumstance can the son claim the proprties under the prop 13 transfer between parent and child? The subject property was not filed on for transfer under prop 13 and just 4 months later the AM 19 or prop 19 kicked in so the son has been paying the elevated new assesment. Should the son make an appointment for this matter or is it done.
In Utah (lived there 19 years) you were assessed every year to full value. Your exemption was about 4% of that number they decided. You could contest. Only won a lower assessment approximately 10% of time
if the new home is of greater value, you don't exactly get to move the current assessment, they will add the difference, which is another ripoff they didn't explain when people voted on Prop 19
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
For you to grow your portfolio in today's market, you really need to be coachable and willing to get off your high horses. I for example, have managed to grow mine from $150k to 300% of my initial deposit within the past 16 months just by copying trades from a broker that has better skillset and technical know-how than me.
@@LucasBenjamin-hv7sk talking about coaching, do u consider anyone worthy for recommendations? I have about $280k to taste the waters now that large cap stocks are at a discount... thanks
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Annette Marie Holt turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Increasing the tax based on assessed values is ridiculous. It's taxing an unrealized gain.
Perfectly said. Clear and to the point.
It's not unrealized ... the inheritors gained a property that they didn't previously own. Why should those that inherit property maintain a low property tax basis if they don't live in it as their home. It's an investment property if they don't live in it.
Exactly, Washington does the same thing.
This is how it works around the country.
@@RichFlemingRealtor It is unrealized because many times I've seen properties sell below the assessed value. Unrealized gain means you own something but you haven't sold it. You're the kind of person who thinks people should pay taxes on unrealized stock gains just because those people may or may not receive a dividend.
I think it’s time we tell the government to shove it 🖕🏻
Ya think!?😂
They already do, right up our ass
Should have been done the minutes the cunts made a private entity called the irs with rights to tax the people of the US!
It is too late Prop 19 will force you children to sell your house when you die
Yes. about 80 years ago!!
we bought our house in 2012 when the market was at rock bottom for 298k. Fast forward to 2021 and our house was worth roughly 830k. Thank God for prop 13.
🎯 Bcuz without it, you as well as many others, would be literally taxed out of your home/private property.
Prop 13 is great. It shouldn't pass to your kids.
@@coreyburke3493 Apparently my ancestors DEBTS can be passed to me in the form of reparations, so why shouldnt my good fortune pass to my choldren?
@@reid1boys because both are ridiculous. That reparation shit isn't going to pass.
Sacramento will never have enough of your money. Every time they raise taxes, the people that pay taxes leave and are replaced by people that don't pay taxes, so they raise taxes again.
I left in 2000 due to taxation
I believe 'davelindgrens' is misinformed
@@harmgregory4560 How would you explain the massive budget deficit? I think the top 20% of the people in California pay about 80% of all the taxes and they are leaving. Would you stay when Sacramento starts talking about a wealth tax? Or taxing you after you have left the state?
@@davelindgren5245 Where do you get the idea that the source of 80% of income is leaving California? smh
@@harmgregory4560 - He didn't say that ALL of the people in the top 20% are leaving along with the 80% of taxes that they pay. He said that the people that are leaving are part of that top 20%, and the people moving in are not paying sufficient taxes to replace what was lost.
Check before doing anything to the title of the property. It may trigger a reassessment of some kind. Check with the county assessors office. You could avoid a nasty surprise.
we pay enough ive lived here all my life and if my property taxes go up there will be a lot more people moving out of state like myself . we need to end this bullshit and get rid of Gavin , what always got me was everyone votes on such a thing but the only ones that pay is the people that own houses but ignorance goes far because the people that rent their rent will go up !
Property tax is just basically lease payments to the county. The purchase price of the property is buying the right to lease it from the county.
Yep... Something our Forefathers NEVER intended when they included: The right to own personal property.
You have no idea what a property tax system works. Please watch the video.
Try not paying your property taxes and let me know if you still think you own your property
yep. You nailed it. The worst part is all the property tax money goes to our woke public school system that we didn't even use as we home schooled to shield our children from it.
@@Bakapooru It was never supposed to exist. See, this is where Americans go off the rails into the dense forest of Big Overbearing Government Overreach. 💡🤔 The more the government taxes the people, the harder the people have to work in order to keep up. Sounds like what lead to The Boston Tea Party. There isn't any wealth accumulation occuring. In many instances Americans are literally losing the family farm. That means we're becoming Surfs in America. Tell me... How many in our Political Class are broke/poor/struggling? Here I'll help you out... NONE 😕
Prop 13 has been law in California for over 40 years and for the past 20+ years our state politicians have been trying to whittle it away. Why? Because this state’s politicians spend too much and there are a lot of people who aren’t paying ANY taxes in this state. Too much spending and not enough people paying has directly lead to our $73 BILLION dollar budget deficit.
It will soon go away. Not fair to people paying higher taxes after Prop 13. Say bye bye soon.
We're trying to take it away because everyone else pays for all the things that make your free loading ass's property worth anything.
💯
@@cryptojuan5897 You have to remember that people who have been paying property taxes for 20, 30, 40+ years paid for a lot of the infrastructure that new homeowners are currently enjoying like fire stations, police stations, public hospitals, roads, bridges, etc… They once paid top rate property taxes, but now that they’re getting older and their income is no longer rising their property tax burden isn’t top level. You could say that it’s not fair that new homeowners are enjoying these things right now, but they haven’t paid that much into the system yet. It doesn’t matter how popular a politician is. If they try to repel Prop 13 they’re going to be immediately voted out of office.
I thought Cali had a big surplus a few yrs ago. Somewhere in the billions. No?
Florida calls this Save Our Homes. It prevents older folks from losing our property because home values increase that results in unaffordable taxes.
So basically I am paying rent in form of taxes on top of paying for mortgage
And you are not in control, the tenants are!!
I don’t understand why we get taxed on property that we own. it’s BS
Audit where all the tax revenues have gone. There’s no way there’s a real deficit with all the inflation in tax revenues we are all paying !
To wellfare and ilegals etc etc .
Take my property tax to give to schools...but the kids are dumb as shit nowadays. What a waste of money.
Modern "Schools" are nothing more than Indoctrination Centers to push LGBTQFD Agenda, climate change (BS) agenda, and other BS like teaching them that Our Founding Fathers were "Extremists". Dumb & Woke are the result.
There is a movement to repeal the inheritance portion
I signed the petition. I only heard about it on a radio commercial. Everyone I talked to about it had no idea about it. I had my GF make a facebook post about it because she has hundreds of "friends". Nobody seemed to give a crap, and I doubt they got anywhere near the number of signatures they needed. I have no idea what came of it.
The Howard Jarvis Taxpayers Association tried to get enough signatures to put a repeal on the ballot for a 2nd time. They didn’t get enough.😢
If they try again, SIGN IT!! And circulate it to every registered voter in California you know!
YES! Go to the Howard Jarvis Web Sight and They have a PETITION to sign to Repeal that HORRIBLE Excessive TAX!
I had everyone I know sign the petition. I am really sad that it did not get enough signatures.
Owning a home is the biggest scam, you never own it because you have to pay on it for the rest of ownership and like any landlord the government can raise your rent. The real problem is that the well healed folks can get out of most taxes with a good lawyer. I knew a coke dealer in the 80's saw him a few months ago and he was still rolling around in cash, one of his tricks was to start a church and have the church own everything he wants to have, no income taxes and no property taxes.. He also mentioned a graveyard as a property tax loophole..
Spoken like some clueless person who never owned a home. 😂😂
My home has nearly tripled in value. When I retire I can sell my home at a huge profit. That opens the door to many possibilities for my life in retirement.
@@joeg9478 Sure your home goes up in value, indeed it does but what you pay over that amount of time almost always exceeds any added value in its inflation.. Incidentally I have owned many homes and continue to do so, and they are at best a savings account compared to other investment instruments. Take bonds for an example. If you invested a $1000. each month for 10 years that would be a $120,000 in principle, depending on the interest rate you would get $3000. to $6000. in interest per month, with the interest paid on those bonds you could buy another $120,000. in bonds and live on that for the rest of your life tax free as Federal and state or municipal bonds are tax free.. If you continued to invest in bonds over 30 years the profits would greatly outpace your homes value over the same period. Peasants and simpletons buy homes because the system has convinced you to do so while not even doing the math on the investment.
So you're a non homeowner who considers paying property taxes a scam and knew a coke dealer. Yeah, that tracks. BTW, pretty sure the well HEELED folks use a tax professional, not a lawyer.
@@harlanjackson6112 Well I am pretty sure the well heeled use a tax attorney, and a accountant. I am a home owner. Been paying property taxes on home(s) for over 35 years. I happen to be a person who has kept every receipt and know the actual cost of ownership over 30 years. Sheep just believe everything they're told and don't bother to do the math..
@@TheRealCheckmate Precisely why I said it opens the door to many possibilities.
You never heard of retirees selling their home and moving somewhere with a lower cost-of-living and a slower pace of life? I could move to a tropical paradise like Bali or Costa Rica and thoroughly enjoy the fruits of my investment.
And of course it all depends on where you live on how much your house appreciates. I live in Southern California four blocks from the beach. Now compare that to Tuscaloosa, Alabama where I'm sure a house will barely see any appreciation.
You certainly don't agree with the previous posters comment?
I think you mischaracterized the limitation on assessment before Prop 19. It was Prop 58 which followed Prop 13 that shielded the entire value of the parent's principle residence, plus another $1M in real estate, from reassessment. What transpired under Prop 19 motivated by the self-interest of the realtor was accurately explained - and despicably deceptive I might add.
If you can't stand on the land you own free and clear you are a slave. Property should be taxed ONE time at purchase. Whether 10, 15, or 20% to be paid like any other loan with an eventual end. Better to raise sales taxes. Then counties governments number one goal will be to create a prosperous economic environment so they get their chunk of cheddar. Otherwise anytime you have your properties teat exposed to public sector unions ability to suck you have recreated the feudal system. Oh and privatize the schools, they are just administration parking places at the trough.
When i bought my house in California, the property tax went up 70% from what the previous owner paid. Then, every year for the 15 years I lived there the taxes were increased by the maximum allowed by the Prop 13 limitation on tax increases. In the neighborhood where I used to live, homeowners are now paying more than $1000 per MONTH in property taxes. Get out of there while you still can.
Unfortunately, this is sort of a double-edged sword. On the one hand, yes, your property taxes went up 2% per year, every year. On the other hand, your property value likely rose by at least double or triple that each year, every year on average. While, yes, you cannot necessarily "do" anything with that appreciation without either selling the property or borrowing against it, but your asset's value - the property value - is increasing faster than the government can tax you on it.
All of this, in my opinion, encourages people to hold on to property for as long as possible, disincentivizes development in the area (as in more housing) and thus you have the recipe for the situation California is in - too many people trying to live here yet not enough housing stock forcing the price of housing to increase as more dollars are chasing fewer products, thus incentivizing holding property and so on until you have a situation where the state is offering what is essentially a lien on your house to borrow the down payment to buy a house where you're going to also borrow just to finance the rest of the purchase, and this program runs out of money within hours of opening it because people are just so desperate to buy a house.
Anyway, rant over.
@@bethellawif we had it your way, older people would be taxed out onto the street because their savings isn’t outpacing the rampaging inflation. And I’m already looking at having to work for the rest of my life just to pay for my property taxes and mortgage. Sad.
Already got the escrow shortage notice due to property tax increase. +$350 on my mortgage.
Happened to me a few years ago.
Last month 😂
Only 4k a year not bad
GARBAGE (for GARBAGE) is now “taxable” property fees whether you have garbage or not, where house was burned down or not, whether it’s vacant or not, whether it’s renovated or not, whether you need only 1 can or nothing not 3, etc., SCAM by thieves
While we're on the topic, speaking of garbage, that guy in Sacramento is where it all starts
@@jamesdewer thieves robbing everybody in broad day light - houses vacant for years no garbage but they are looting money & refusing to refund it, houses in construction no garbage & debris removal is payable separately, houses burned down no garbage, occupied houses depends on people either very little to no garbage to more garbage with more occupants, senior discount robbing anyway & refusing to refund it, 1 trash can is not $450-$479/year & growing by 3% annually, looting recyclable, selling & yet want to be paid for taking it by force, same with greens composted but charged by force for nothing, not removing any trash or anything looting money anyway under the threat of property lien. These thieves & criminals can not be any more criminal until the next SCAM they will come up with. Which is right here proposition #1 with $6-$7B price tag attached to loot “for homeless.” Looting taxpayers money together with homeless who are refusing to live by the rules like most people in homes with bills to pay not on the streets or beaches for free & pockets full of money from the aka government = taxpayers. These in charge pocketing even more & looking for more homeless because “what are we going to do without homeless?” Need money & “job security” - WAKE up everybody to this looting BS SCAM!
Trash is owned by the mafia.
Look into why "garbage pick up" is part of your property tax fees if you want to understand why.
@@cabot100 “garbage pick up” is not the same as using “garbage pick up as SCAM” to loot MONEY! In normal places garbage pick up fees are as normal as 1+1=2 and cost is $140/year not ARBITRARILY DEMANDED/ESTABLISGED IN SCAM $450/year + 3% increase annually after. In normal places you can have 1 can or 2 or 3 or 4 if you need that many and pay accordingly. In normal places you can & need to haul your own garbage to designated garbage field for FREE. In normal places you have senior discount & you have it as stated. That’s in California too in other normal cities & locations without mafia.
We don’t need to look into definitions to know what SCAM & FRAUD is, or mafia, do we?
That’s just the part of the SCAM! Here is more to prove it! (something else like conspiracy to DEFRAUD)
Property has nothing to do with garbage, property generates no garbage, people do. It’s a service, period! Property must be occupied by humans to generate garbage (food containers, cleaning, pets, etc.,) - properties are vacant (FRAUD & SCAM) for years & there is no garbage
but fees are charged & money looted, properties are burned down & homes no longer exist & no garbage, properties being fixed up & renovated & any debris are removed separately & paid for separately not as garbage, properties are vocational homes or second homes occupied occasionally without garbage removal for the most time but money looted, etc., ITS A SERVICE that might or might not be in use & it’s a SCAM & FRAUD!
Here is the 3rd part of the problem - It’s a THEFT by FORCE.
“One man garbage it’s another man treasure” my “garbage” RECYCLABLE it’s my MONEY & my property which I have a right to SELL it myself for my own money or donate NOT being EXTORTED to give it away by force, pay for being extorted & they will SELL IT on the top of it all & double down on SCAM & FRAUD.
How about adjusting the $500,000 capital gains tax exception up
Like 1,000,000$ would be nice 😮😅
Or, how about we start electing politicians who don't spend OUR money like drunken sailors...
People are not “hoarding” homes. If someone owns multiple homes they are renting the others which is a home/shelter for the renter. Also average home ownership is 14 years across the country and most on inland CA is less than than that and your urban coastal CA areas are similar to the national average so the argument that Prop 13 is causing a housing issue is total BS. How about controlling the border so population will stabilize and we can build for citizens without destroying neighborhoods of single family home ownership for corporations owned high rise rental properties since CA does not have zoning protection for single family homes or parking regulations.
Anything to divert responsibility from the elected officials while soaking the taxpayers. Why people continue to vote for this nonsense is beyond me...
But they need the money to provide medi cal to anyone in the entire world who wants to illegally cross the border!!!
@BethelLaw as an old tax guy I love your videos. It clears up some stuff I didn’t know about. But I do need to know about for my kids and grandkids as we’re getting to set up a trust. But I am getting ready to buy a parcel for a vacation property. Probably just a piece of land in the mountains we can use for vacation or maybe build a cabin someday. I wish you would do a video on the tax implications and inheritance of a second property to kids from parents. And the best way to do that. Thank you much, sir. Appreciate you from an over. Retired vet🇺🇸
Go back to before prop 19
Exactly what my parents did, they deeded all 3 rental properties to my name before Prop 19 goes into effect. My tax bases stays the same as before.
prop 19 had some good in it the problem was they sold the people with just part of the propaganda and left out the fine print of the death tax. Thank you Newsom😢
@@sipo5800 ... death tax? Hysterical!!!
The government needs to get their hand out of our family cookie jar and what we worked to own. They own everything else, so they need to fall off. I'm still mad about having to buy a permit to visit the forrest that our taxes are supposed to maintain and keep open for us for free. $15 just to park your car anyplace we already paid for to use. This is cruel. PEOPLE BEFORE PROFFIT.
Just added myself to your mailing list. I hope to set up a meeting soon. I have an autistic child and I wish to ensure she is protected from this world.
sorry, I feel your concerns. I am in the same boat.
Me too.
@@warthog123k
Always consult a local qualified CPA before making a decision to verify all rules, laws and pending laws. It's so much to remember!
That itself is a scam. People should not have to hire a CPA to live.
Why is Tax law not subject to "Expo-Facto"? As an example, if I don't like 5-bedroom homes and I get control of the "Ballot Process" such that I get an initiative passed saying they must be taxed at twice the rate as a house with fewer bedrooms then in effect I could force property owners to have to sell. My point being that buying a principal residence is considered a 30-year investment at current financial conditions, but by changing laws that stability (and ability) goes out the window. This is disruptive taxation!
Democrats always looking for ways to circumvent Prop 13. Brown always hated it.
COMMIEfornia
In Caldor fire of 2021 I lost principle res. in Eldorado County of 25 years. Insurance enabled purchase of replacement principle res. in Mono county Dec. '21. I did not sell burnt out lot in Eldo County and was told I needed to do so ( 2yrs after purchasing @Mono Co.) in order to qualify for prop. 19.
I can confirm a sell must take place within 2 years of a purchase for the value transfer.
I have lived in my house in California for 38 years. I was married for 40 years and my husband passed away in 2012. If we would have sold this house in 2012, prior to his passing, we would have had $250 ea or $500 total before tax assessment on sale, correct? I think after so many years of marriage and filing joint tax, a widow/widower should be able to have a higher credit than a single owner, I also think there should be an income tax deduction for widow/widower, not from married filing joint back to single. You need dependents to claim head of household.
I left california in 2020 At the age of 55.. Is sold my house for 960,000. 2400 sq ft And a crowded neighborhood.. I moved to the state of tennessee no state income tax Purchased a house between nashville and memphis for 640,000. 5500 sq ft on 8 acres and 4000 sq ft shop. You can still purchase a very nice house for 350,000 today here
Prop 13. This is why its so important.
Pricing people out of ownership!
On purpose.....the new mexico
@@adeledorman6447 you will own nothing and like it , now eat zee bugs!
@@adeledorman6447 You're way fkn off. In Mexico you can afford to buy a home. And they capitalist, the US is a step away from Communism.
I got screwed when they passed Proposition 19 in 2020. My grandmother passed away and left her house. My dad and aunt were on the title. My aunt wanted out to move to Idaho, so I purchased her half of the house, leaving my dad on the title and adding my name. The taxes went up from $1,700 to $8,000 a year, even though the house remained in the family.
I plan on obtaining a reverse mortgage when I reach age 62. This will require me to remove my father's name from the title and only mine remains. But because of Prop 19, even though I am not selling the home and only removing my father's name from the title, California will raise my property tax to $16,000 a year. The home is my residence.
thank you prop 13
Stop blaming Prop 13 for the weather
Amen. Same folks that voted for the thieves, believe what the thieves are telling them about how prop 13 is hurting the State.lol.
@@samuelmyers1575 low low property taxes for some of us long time owners
You must mean prop 19 enacted in 2021, which impacts prop 13....
I think property 13 passed by my parents kept allot of families in homes that they would have been booted from without. Prop 19 seems like they are attempting to get rid of the multiple home transfers. Government can always spend more of your money.
Because of ballot harvesting and election fraud in California...
There is no hope. The communists are in full, permanent control.
All of the smart money is planning to leave.
That’s probably true 😮
I really get tired of Realtor associations supporting things like this. Yes, not only would it increase the number of properties to sell but many would also be a lot more valuable today so it was very self-serving of Realtors to support this Proposition. I was a CA native but moved 15 years ago and work in the RE industry in another state. I still sometimes butt heads with RE associations who want to support political actions that they say well help consumers but actually help Realtors more. But, in California, it's obvious that a home that was purchased decades ago for $50,000 will generate a wonderful commission when sold at over $1 million today since they won't have to wait for another generation to sell it.
Thank You we are pushing this for Washington.
Terrific video. It was very easy to understand the concepts and answered many questions I had top of mind. The most helpful part (although I didn't like the answer) were the details regarding requirements for children to use the home as their primary residence to maintain the older assessment. It's a bummer that - once they no longer claim it as their primary residence, even if after many years of living there - the taxes are re-assed. I sure hope prop 19 gets repealed in the next election.
Property should only be based on cost when constructed and inflation should be a penalty for the government who cause it
Please take a macroeconomics class. Thank you.
I'm tired of the insane amount I'm paying to LA County for a tiny condo I bought 10 years ago. It just keeps going up. Of course anyone renting their units is forced to increase rent.
Wow so kids must live in the same property all their lives if they don't want reassessment after inheriting…. Let’s see who even knows these rules.
Serfs ... tied to the land.
No they have to move into the home within 1 year of parents death.
Scheme indeed, via my PG&e bill?
Two letters too long....SCAM
Prop 19 really screwing people over on property our parents paid off and left us. California bs
Thank you or exposing this corrupt ass bill. My parents are older and this really helps.
So, married couple live in home 35 years. Dad passes on, a 45 year old son disabled since childhood moves in, lives with mom, years later mom passes on, the son inherits the property, the tax base stays the same for the son until he sells it.
I think it's simple to prevent home hoarding, and that's not their real goal.
They don't want any family to be able to build wealth through generations.
I think we should pay realtors back by a proposition to limit their commision to half a percent on a sale.
Didn’t realize taxes were something that was supposed to be in the front of your mind taking up head space all the time. I mean, really, is this really what a good govt does to its citizens? Isn’t there a way to incentivize the rich not to hoard property without making the rest of us poor?
I get the impression the state is trying to drive the middle and high income people out.
The end goal is to turn us all into serfs.
Goal seems to be to drive out middle and high income people
There is a shortage of housing because 7M migrants have hopped the border.
@user-ut4zw6so6o it would drive out low income people too, we just don't have money to move
High property tax should be levied ONLY on investment properties, not your primary home.
After all, too many investment properties had caused the housing bubble that drove many people into the streets and prevent many others from ever owning a home to live in. Also rent now exceeds 40% of people's income.
Tax investment properties at point of sale and use those tax dollars to help offset housing prices for local buyers.
Hey, whoever breaks it, needs to fix it!
About time everyone pays equal tax!!
I pay 4K, next door pays $1100
In NY we have the opposite system - the county assessor has full authority to reprice homes to market, so it's not uncommon to pay $12,000 a year in property taxes only to have it increase by 5, 10, even 15% the following year, also does not matter if you purchased the home or inherited it, same rules apply.
That's typical of all Loser States run by corrupt politicians that have no interest in keeping you financially in tact. They are like a Money Sponge that can never get enough of your hard earned money.
Born and raised in California, and I own my home, which I finally paid off now these bums are gonna come after me for more taxes? we have purchased a plot of land in Idaho and are packing our bags. All we want is to be left alone…..
Property tax is an absolute racket. Assessments NEVER result in you paying less taxes, only the same or more. "Assessing" the real value of your property is something that is never actually done.
Got what you voted for
My friends mom passed away in 2019. His mom had a trust and she left the house to him. He hired an attorney who didn't do anything for him. By the time he realized there was a problem with the attorney it was too late to claim the parent to child exemption so the property taxes were reassessed and he is now stuck with a large property tax bill. He still hasn't transferred the property from the trust into his name and yet he's stuck with this huge bill because his attorney screwed him over. He finally went to the assessor's office and filed the paperwork for parent to child but was told he would still have to pay the higher taxes that had already been assessed but going forward they would correct the problem. I think they should have to go back and lower the taxes back down to what they should have been but the county is saying no. The property hasn't even officially changed hands so how can they do this to him? He is being overcharged $16,000 in back taxes.
What about TODDs? I filed one in 2020 for my only child. That's the only asset I own besides my bank accounts (PODs) and car. thank you for this video!
I hear there’s a ballot measure to requiring a million signatures to repeal 19 in November. There was a video regarding it
Stay away from prop 19!!!
@@malanalan1 huh?
Like an HOA, everytime a resident leaves, everybody that stays behind, has to pay extra for all the vacancies.
No, the new owner of the unit takes over the dues. If they don’t, the HOA will place a lien on the property and sue for payment.
Thanks for sharing
NEWS STATIONS ACROSS the US, the county/cities need to be called out with fervor, as well as other municipalities on the egregious abuse by these localities for forcing the elderly to pay Real Estate/Property taxes on their only homes. Worse, some are being fleeced at 100 - 300% real estate over assessments increases in one year!!!. News investigations/stories must be done on this story with urgency as many homeowners, elderly and veterans across the US are losing their homes due to over assessments by their local counties. Everyone must write to their Governors, Senators, Representatives, county officials to stop this fleecing of the elderly.
An unrealized potential gain may never occur , in fact it may become a liability !
We bought this house and the County came out to measure it and charged us more. We are growing so bought property w/house for 87k. Now we fear they will ignore our No Trespassing Signs again. How to stop them from going onto our property un-invited? Thanks
Your government hates you. Just look at what they do to you everyday.
What if adult child lives in ADU on the property and has for many years prior to inheriting the full property? If they want to stay and keep the same tax basis, does it work if they are in the ADU vs. primary house?
Great question! The basic answer is that we ignore the ADU, in that the county is looking at whether the child is living on the property or not. They can live in a room inside the house, the garage, a barn, an ADU, whatever. So long as they live on the property - the parcel(s) of land on the deed to the property - then the physical location as to where they live doesn't matter.
Now, this answer changes if we have a multi-family housing situation such as a quad-plex. In that case, we still don't care where the child physically resides, the property is still going to be reassessed because it's not a single-family home or a duplex.
Taxes go up every year anyway, how absurd is that, sold my property in San Diego and got the hell out of California
What if I die and my kids immediately sell my house as-is? Is it just the $250,000.00 exemption, and capital gains of the rest, or is there some property taxed owed too?
This is so confusing that I don't even remember Prop. 19 on the ballot. They are so sneaky.
Interesting description of the nuances of prop 19.
IMO, the 2% cap should either have a limit to how undervalued the assessment can get, or be scrapped entirely. This special feature entrenches financial advantages to wealthy families and legacy businesses over young families and new entrepreneurs.
Perhaps the property tax rates are too high, but we need to encourage new homebuyers and entrepreneurs rather than start them off at a serious disadvantage.
Property tax is so ridiculous. It largely funds roads, schools, fire etc. So why should it ever go up any faster than inflation?
Why should it go up if I remodel the house and it has new wiring etc? Or if I build a new house that is the same size but is very expensive because I used high quality materials and features that drive up the price of construction but make it more energy efficient long term?
They’ll never balance the budget. Always squeeze the productive for more.
Best thing to do is have everybody pay the same fair tax rates. This would insure that housing would go to the most beneficial use. None of this have dieing baby boomers hogging all the housing. If the taxes get to high sell the house or develop it into more than one residence.
Best thing to do is have everybody pay the same fair tax rates. This would insure that housing would go to the most beneficial use. None of this have dieing baby boomers hogging all the housing. If the taxes get to high sell the house or develop it into more than one residence.
Who can even (really) afford a home in California now? And for those that paid $200K many years ago and are expecting 1M or more when you sell (finally) - who can afford to buy it?
They can also reassess. I purchased my fixer upper home for $400k and was reassessed to $815k
They can’t do that. Prop 13 protects you from that. I would sue them.
Yeah. 1% at the start. Should be $4.000 a year. Allowed 2% increase yearly.
My city did the same, cuz I keep up with local laws, I made the thing ugly as all hell, threw dried mudd on it and put a bunch of stuff on the drive way. And sure enough, the bastards reassessed the value and with that, the taxes. I managed to keep the value only 50k over. True, the county can't, but they will and then you have to fight it in court.
@@bryan565656 And prop 19 made it possible now. Good job californian voters smfh
What he is referring to is the closing of a construction permit that is not a replacement item(s)and yes that does create a reassessment of the property for the portion of the property that was constructed upon under prop 13.
File a reassment when value drops
The real reason properties increase in value is to increase property tax, the house is actually not worth that much. Houses on the coast are also overvalued ignoring tsunami risk for tax purposes.
That's why there will never be a housing market crash.
Keep raising taxes for teachers and public employees is a never ending road
All of this helps what Carl Schwab said regarding home ownership, "YOU WILL BE HAPPY AND OWN NOTHING". All of this helps the top 5% of this country to own everything.
Why do I have additional add on taxes to my property tax for high school, community college, etc, when 45% of my prop tax ALRADY goes to schools?
Apparently you didn't do well in school. Your spelling is a good example of that. And is that the fault of funding for public schools? ISMH
My grown child lives with me and has been disabled since childhood . He can't afford a huge tax increase , what about joint tenant ? That's what my mom did for me .
If that child lives with you, then no reassessment upon the transfer, whether it be adding them to title now as a joint tenant or through an inheritance. However, I would strongly caution you not to simply add the adult child to the title as a joint tenant.
(i) You mentioned they are disabled. In what capacity? Physically or mentally/developmentally? If it's not a physical disability, then you or they may run into a capacity issue where we have someone on title to a house who doesn't have capacity to do something with the property (E.g., sell it).
(ii) It would be in their best interest to inherit the property so as to benefit from a stepped-up tax basis which would minimize or avoid capital gains taxes when they sell the property after your death. If you add them to title now, then you transfer over your tax basis and no step-up on the whole of the property at your death.
(iii) Joint tenancy is a temporary probate avoidance and only works as to the title owners, no contingency planning if/when one of the owners dies. Thus, a trust is more robust, avoids probate, and can be changed at any point in time. At the very least, do a revocable transfer on death deed.
@@bethellaw Thank you so much , he is brilliant but rather dysfunctional . He would have to have a roomate when I'm gone , to afford the house and bills . Unfortunately I don't have money to do a trust , I had some inheritance , but the 100 year old house needed repair on one side , and I put up some fencing as well .Paying the mortgage and bills and food used the inheritance . That's why i was thinking about joint tenancy . It's very complicated business ..
Great video thank you.
If you inherit a property and don't live in it as your home, why should you get to keep a low property tax basis going forward? If you're not living in it, it's an investment property.
That’s why my folks deeded the rentals to me before prop 19. Tax base stays the same. Now all I have to do is live there for 2 years as primary resident and get $500k tax exemption.
@@jml9550 ... hope you checked with a tax or trust attorney first.
@@RichFlemingRealtoras long as we own the house for more than 5 years and I live in it for 2 years as primary residence. $500k is tax free. Either way, rental income are great as supplemental retirement income as well.
To clarify, $500,000 is the amount of gain that is exempt from your income taxes if you sell the inherited property after living in it for two out of five years.
after the $500k, it is tax as long term cap gain at 15% max at the Federal levels and 10% at State level
What’s fair about sales prices (bidding wars between potiential buyers created by real estate industry and controlled supply) ?
Question, if my dad pass in 2012 and I been living in the house before and since. The title has not been transferred to me due to my sisters got mad and sue. That’s done but due to covid and lazy, I still have not done it.
How would Pro 19 affect me? Do I own 10 years of Supplement taxes?
It was deceitful by realtors
How the prop 19 recall coming along.
Seniors that want to move and wildfire victims get screwed if you recall Prop 19.
@@RichFlemingRealtor yeah sure
@@ralphramirez1979 ... were those groups impacted by Prop 19 or not?
@@RichFlemingRealtorIt is a Scam
I agree Realtors have to put food on the table but using the force of tax law to do so is wrong.
Voters also need to stop just watching proposition TV ads and Read the actual proposition as most are trickery.
So very angry that Prop 19 passed
And by a public hair's margin no less ...
My parents own a few properties and would like to get a consultation we live in San Gabriel Valley area
Hello @gabu19781. We can certainly offer a free consultation to you and your parents. I don't know if UA-cam will take kindly to us putting our phone number here as a comment, but if you go to our channel page or our website (www. bethellaw .com) then you will be able to reach out and schedule that consultation.
Thank you very much for watching!
1) Your opinion on whether taxes should be higher does not matter. The voters ( who are comprised of homeowners and renters) spoke. Perhaps you should put the same restrictions on the governor's spending. There's plenty of taxation money, It's being spent poorly. Do you think rent is high now? Raise the tax structure and see where they go, It will give you something else to complain about. 2) Why buy a condo/house where you're fully aware of the HOA consequences of assessments and then complain about it? Buy a free home with no H o a. there are plenty of them. Again, perhaps our government officials should be better stewards of the money they already take from us.
If you think CA system is bad, come to Texas. The TX system re-appraised your property every year and then tax you between 2.25%-2.9%, averagong out to 2.5% for school, county, city, community college, farm road, municipal utility district, etc...
So, if you make $150K per year andlive in a $600K home, you will pay $15,000 per year at 2.5% rate (or $1,250 per month) on top of your mortgage payment.
$15,000 tax on a $150,000 salary is basically a 10% state income tax in effect. So when they claim TX has no state income tax, it was in effect a lie.
Homestead exemption limits the increase on your house appraisal to 10% (each year) but each taxing authority can raise the tax rate. Thus at a minimum your property tax will go up 10% per year: $15000 for $600K this year, $16500+ for $660K next year.
Such are the real horrific tax rip-offs in Texas, taxing on UNREALIZED gains, and practically evicting senior citizens out of the houses they worked all their lives for.
Such a crooked system!!!
Can you talk about adding a family cemetery to the property?
Don’t think putting ‘Ol grandma in the backyard turns it into a cemetery. And if you did I sure wouldn’t want to buy the property. Lol.
Our home is in an irrevocable trust uder my husband's name, due to the passing of his father. If we took it out of the trust and put it in his name only, there would not be a srep up in taxes. If we put it in both of our names would that negate the protection?
Kominusome is up to this 😮
California increased property taxes and property insurance went up 10 times higher
@12:07 if I give the property away, how is that different than transferring the property to my kid ? If you die and your kid inherits the property the basis gets stepped up, would that mean the assessed value of the house - the basis would be 0 so the difference would be under $1million ?
Please cover prop 55.
what if the parent owns multiple properties and a son lives in one of the properties but not the parents primary residence. Under this circumstance can the son claim the proprties under the prop 13 transfer between parent and child? The subject property was not filed on for transfer under prop 13 and just 4 months later the AM 19 or prop 19 kicked in so the son has been paying the elevated new assesment. Should the son make an appointment for this matter or is it done.
Why hardworking new homebuyers have to subsidize their son. Pay or sell luxary asset.
You mean they don't just increase the tax value like they do in Minnesota ?
In Utah (lived there 19 years) you were assessed every year to full value. Your exemption was about 4% of that number they decided. You could contest. Only won a lower assessment approximately 10% of time
What about 1031 exchange??
it applies to investment property and only defers capital gain taxes
Prop 19 also allows seniors to sell their home and apply their current assessment to their next home, do you know if there is a time limit to do so ?
two years but where I moved from the taxes were about the same or more so I could not use prop 19
if the new home is of greater value, you don't exactly get to move the current assessment, they will add the difference, which is another ripoff they didn't explain when people voted on Prop 19