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Proposition 58/193 Q&A
Parent/Child & Grandparent/Grandchild Exclusions:

 

Q.  I just inherited the old family home, but I don’t really want to move back to it. Do I have to make it my principal residence to qualify for the Proposition 58 exclusion?
A.  No.

Q.  I just inherited the old family home which is situated on ten acres. Are you sure that there is no value limit for excluding the principal residence from reassessment in this situation?
A.  Not in this situation. Ten acres exceeds the amount of land necessary for a site. Only a reasonable amount of the land would be considered part of the prin­cipal residence.

Q.  Can a transfer to or from a legal entity (corporation, partnership, etc.) be excluded by Proposition 58 or Proposition 193?
A.  No.

Q.  I am thinking of giving several properties to my grandchildren. Can I decide which grandchild gets the exclusion?
A. Probably, as long as you separately transfer each property to each grandchild. Remember that the first grandchild who acquires property, and is eligible for the exclusion, will probably get the exclusion. This assumes that the parents of the grandchildren who would qualify for a Proposition 58 exclusion from the grandparents are deceased. It also assumes that the grandchildren have not already reached the $1,000,000 limit for “other property” transferred to them by their parents under Proposition 58.

Q.  My two sisters and I recently inherited several properties from our parents. Which one is entitled to the exclusion?
A.  You must decide that among yourselves. Remember that the first eligible person, who claims the exclusion in a timely manner, will probably get the exclusion.

Q.  I recently inherited seven commercial properties, other than the principal residence, in Los Angeles County. How do you decide which properties will get the $1,000,000 exclusion if I qualify?
A.  You must make that decision.

Q.  My mother recently died and left me with about $4,500,000 worth of property in Arizona. She also left me an apartment house in Long Beach, California, which is currently assessed for $306,000. Does in­heriting the Arizona property put me over the $1,000,000 limit, and make me ineligible for the Proposition 58 exclusion on the apartment house?
A.  No. You should be eligible if you meet all of the other requirements. The $1,000,000 limit applies only to transfers of properties within the State of California.

Q.  My father died on December 1, 2000, and the property was sold out of probate to a third party on November 20, 2001. Do I still have (3) years from the date of death to file a Proposition 58 claim?
A.  No. You must file prior to the sale to the third party.

Contact your Local County Tax Assessor for more information

 

Information deemed reliable but not guaranteed.

Charlie Dunn
Berkshire Hathaway HomeServices California Properties
11306 183rd Street, Cerritos, CA 90703
Direct Line: 562-430-4007
Make Yours a "DunnDeal" 

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