BLOG, NEWS & EVENTS

Proposition 19 – 2021 Updates to California Property Tax and Parent-Child Exclusion

  • December 09, 2020
  • Blog
Potente, Business Lawyer and Company Formation

Starting February 16, 2021, the California property tax parent-child exclusion will become heavily restricted. Currently, parents may transfer their primary residence to a child without facing property tax reassessment and shelter up to $1,000,000 in appreciation of real property that is not a primary residence. Under Proposition 19, a child can only avoid a property tax reassessment if the child uses the transferred property as their primary residence. Additionally, under the new law, the parent-child exclusion is capped at $1,000,000 – meaning, even if a parent transfers property to their child and the child uses the property as their primary residence, any appreciation in excess of $1,000,000 will trigger a property reassessment for that excess value. To learn more about Proposition 19 and its effects on estate planning, click here to read an article about this new law by Shephard Mullin.

This post is for informational purposes only and does not constitute legal advice. Never rely solely on a blog post in evaluating your situation — always contact your attorney when your legal rights and obligations are on the line.

NFT
  • September 29, 2022
  • Blog

The Rise and Fall of NFTs

Non-Fungible Tokens give proof of ownership of a digital object. NFTs have unique qualities that cannot be exchanged for others of the exact same type. NFTs are primarily centered around digital art, but can also include collectables, trading cards, event tickets, music, digital video clips, and virtual fashion. Although digital...

Tax exemption
  • August 11, 2022
  • Blog

Annual Tax Fees Waived for New Business in California

If you are interested in starting a Limited Liability Company in California, there is no time like the present. In an effort to welcome new businesses to the golden state, California Governor Gavin Newsome signed legislation in 2020 to exempt startups from paying the LLC franchise tax during their first...