Taxes - CA Real Estate

homeowner property tax exemption

$7,000 of assessed value is deducted for homeowners.

deductions from sale

250,000 or 500,000 if married of capital gains is deductable. Rental property for income loss can also be deducted

veterans exemption

CA residents who served in the military get 4,000 tax exemption of assessed value. applies to widows and family. No homeowners and veterans exemption on the same property.

tax exempt property

all government land is tax exempt. lessee with gas and oil rights on government land is not exempt. property used by non profits is exempt. 50% of growing crops are tax exempt.

Mello Roos Community Facilities Act

applies to Mello Roos liens which are muni bonds issued to funds streets, sewrs before housing is built. developer pays bond until home is sold then homeowner pays it. helps developers finance projects. Broker and primarily seller need to disclose mello roos bonds. Failure to disclose is subject to discipline by Real Estate Commissioner. Failure to give notice permits buyer three day right of rescission following receipt of mello roos notice.

Improvement Bond Act of 1915

assessments for street and highway improvements are based upon the frontage of the property facing the improved street. Allows owners 30 years to pay off their poritn of teh ssessment.

federal tax for foreigners

buyers from foriegn buyer must set aside 10% witholding to ensure capital gains are paid. Brokers must check citizen ship of all sellers. Residential home under 300,000 is exempt.

Business license tax

city may levy a tax to brokerage firms based on gross reciepts. Is a nominal fee starting about$100 a year.

county assessor

county officer who determines the assess valuation of land, improvements and for the purpose of taxation.

real property taxes

determined according to the value of your property (ad valorem) and paid annually or semi annually

delinquent tax sale (book sale)

every June 8th tax collector publishes list of tax delinquent properties. Serves as a notice of intent to sell or "book sale" which starts a fiver year redemption period. If not redeemed it is deed over to the state. After 5 years state if back taxes aren't paid propery is sold at public auction.

property tax postponement

for seniors and disabled with income of 24,000 or less. state pays taxes in return their is a lien on the property. Lien is paid upon death.

property tax rebate

fore seniors or disabled with low income (12,000).

property tax appeal (over assessment)

handled by the Board of Equalization in the county. County Board of Supervisors serves as the Board of Equalization.

transfer tax basis (Prop 60 and 90)

homeowners can transfer their low Prop 13 tax basis to a new home if they are over 55, purchase another home within two years of sale, replacement home is of equal or lesser value, new home is in same or participating county.

assessed valuation

is set at 100% of the selling price or fair market value, whichever is higher. Plus 2% a year every year after.

special assessment tax

levied by a city or county board of supervisors with voter approval for the cost of specific improvements. Body that levies a special assessment is the special assessment district board.

Prop 13

limits taxes to a maximum of 1% of the March 1, 1975 market value of the property plus the cumulative increase of 2% in market value each year. If property transfers after 1975 then it is 2% from market value each year.

income tax deductions

loan interest is deductable as are property taxes and any prepayment penalties. Income producing properties can deduct operating expenses and depreciation.

resident of another state

need to set aside 3.33% for the franchis tax board. broker is liable if funds aren't withheld. Exemptions are 100,000 ore less, principal resident of seller, seller signs CA residency declaration, seller gets a waiver.

county tax collector

officer who collects the real property taxes. tax collector handles tax liens sale.

depreciation exemption

only income property improvement depreciation, not land is deductable. Straightline method used 27.5 years for residence, 39 years for commercial.

regressive tax rate

same rate no matter the amount, like sales tax. Progressive is higher for more money, like income tax.

property tax as lien

you don't pay then they become a lien on January 1. taxes are due on November 1st (first installment of that year) and February 1st (2nd installment).