Reminder: Your massive property taxes are due

[CA renter]

[quote=edna_mode]OK, I bring examples, and analysis in the form of an open letter to Warren Buffett by a Menlo Park resident who researched the effect of Prop 13 on not only resident properties, but commercial properties:

http://www.almanacnews.com/news/show_story.php?id=6256

I wonder what a similar analysis for San Diego would look like. Maybe the ire of all these homeowners is misdirected at each other, and they should be looking more deeply into what the inherited mom-and-pop shops are paying for fire, sewer, water, police, courts, and an educated work force.

Deconstruct away.[/quote]

Yes, I’m aware of the problems with Prop 13 and commercial RE, and agree with the letter writter here.

Again, I strongly favor Prop 13 for **primary residences** ONLY where residential properties are concerned (and some possible exemptions for multi-family dwellings where the owner agrees to some sort of rent control — sharing the benefit of Prop 13 with the tenants instead of having taxpayers subsidizing the investors’ profits).

I’m mixed on commercial RE. I’d like to see it in effect for a single commercial property per SS number (or the SSN behind the EIN/TIN used for ownership of the building) or something, but not for multiple buildings belonging to a single family or entity.

It’s not as easy to deconstruct as one might initially think, and I staunchly support private property rights, so have a big problem anytime someone thinks a family (even heirs) should be taxed out of **their own** homes. IMHO, transferring assets within a family is a private matter, and should not trigger any kind of reassessment. That being said, if they want the benefit of their parents’ cost basis for property taxes, then they should not be able to step-up the cost basis at death/transfer for capital gains purposes. It should be one or the other. Perhaps people should have a choice when they inherit to either step up the cost basis for all purposes, or leave it at the original cost basis for all purposes.

Yes, you’re right about some of the deadbeat kids taking over mom and dad’s house after they die, then letting it fall apart. We’ve seen the same ourselves, and it’s a shame. Perhaps that could be dealt with in some other fashion (code enforcement?). IMHO, they deserve a home, too, and there is no reason for me or anyone else to feel entitled to take away their right to live in their own family’s home.

[Coronita]

[quote=briansd1]bearishgurl, if the heirs used their inherited houses as piggy banks, then they are indebted and they’ll lose the houses to foreclosure soon enough.

Just hang in tight and eventually the houses, will pass on to new owners.

If the banks loaned money to people without incomes to support the mortgages, then they deserve the losses that are coming to them.[/quote]

Briansd, I think you’re counting way too much on people to be irresponsible to “lose your home to foreclosure”.

In a case when someone “inherits” a home, the major financial decision usually occurs at the time of the inheritance.

For most of the cases, the house is sold immediately either because the person never finished paying it off, or because the asset wasn’t adequately protected from estate taxes/or just poor estate planning, so the beneficiary ends up getting hit with huge estate taxes…

Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.

[Coronita]

[quote=briansd1]bearishgurl, if the heirs used their inherited houses as piggy banks, then they are indebted and they’ll lose the houses to foreclosure soon enough.

Just hang in tight and eventually the houses, will pass on to new owners.

If the banks loaned money to people without incomes to support the mortgages, then they deserve the losses that are coming to them.[/quote]

Briansd, I think you’re counting way too much on people to be irresponsible to “lose your home to foreclosure”.

In a case when someone “inherits” a home, the major financial decision usually occurs at the time of the inheritance.

For most of the cases, the house is sold immediately either because the person never finished paying it off, or because the asset wasn’t adequately protected from estate taxes/or just poor estate planning, so the beneficiary ends up getting hit with huge estate taxes…

Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.

[Coronita]

[quote=briansd1]bearishgurl, if the heirs used their inherited houses as piggy banks, then they are indebted and they’ll lose the houses to foreclosure soon enough.

Just hang in tight and eventually the houses, will pass on to new owners.

If the banks loaned money to people without incomes to support the mortgages, then they deserve the losses that are coming to them.[/quote]

Briansd, I think you’re counting way too much on people to be irresponsible to “lose your home to foreclosure”.

In a case when someone “inherits” a home, the major financial decision usually occurs at the time of the inheritance.

For most of the cases, the house is sold immediately either because the person never finished paying it off, or because the asset wasn’t adequately protected from estate taxes/or just poor estate planning, so the beneficiary ends up getting hit with huge estate taxes…

Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.

[Coronita]

[quote=briansd1]bearishgurl, if the heirs used their inherited houses as piggy banks, then they are indebted and they’ll lose the houses to foreclosure soon enough.

Just hang in tight and eventually the houses, will pass on to new owners.

If the banks loaned money to people without incomes to support the mortgages, then they deserve the losses that are coming to them.[/quote]

Briansd, I think you’re counting way too much on people to be irresponsible to “lose your home to foreclosure”.

In a case when someone “inherits” a home, the major financial decision usually occurs at the time of the inheritance.

For most of the cases, the house is sold immediately either because the person never finished paying it off, or because the asset wasn’t adequately protected from estate taxes/or just poor estate planning, so the beneficiary ends up getting hit with huge estate taxes…

Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.

[Coronita]

[quote=briansd1]bearishgurl, if the heirs used their inherited houses as piggy banks, then they are indebted and they’ll lose the houses to foreclosure soon enough.

Just hang in tight and eventually the houses, will pass on to new owners.

If the banks loaned money to people without incomes to support the mortgages, then they deserve the losses that are coming to them.[/quote]

Briansd, I think you’re counting way too much on people to be irresponsible to “lose your home to foreclosure”.

In a case when someone “inherits” a home, the major financial decision usually occurs at the time of the inheritance.

For most of the cases, the house is sold immediately either because the person never finished paying it off, or because the asset wasn’t adequately protected from estate taxes/or just poor estate planning, so the beneficiary ends up getting hit with huge estate taxes…

Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.

[briansd1]

flu, the current estate tax exemption is $3.5 million. Most people don’t pay estate taxes. If your estate is more than $3.5 milliion, better to pass on your wealth to heirs during your lifetime.

I was responding to bearishgurl about her Chula Vista neighbors.

But I agree with you flu, most people who inherit houses free and clear don’t really need to borrow.

I’m actually counting on low property tax assessment for my retirement. I don’t want to pay anything when I’m not making money. I’ll probably rent out my house for income and move to a country where there is very little property taxes.

If you pay $6,000 – $10,000 per year in property taxes + HOA, you can live comfortably in some parts of the world for the whole year.

[briansd1]

flu, the current estate tax exemption is $3.5 million. Most people don’t pay estate taxes. If your estate is more than $3.5 milliion, better to pass on your wealth to heirs during your lifetime.

I was responding to bearishgurl about her Chula Vista neighbors.

But I agree with you flu, most people who inherit houses free and clear don’t really need to borrow.

I’m actually counting on low property tax assessment for my retirement. I don’t want to pay anything when I’m not making money. I’ll probably rent out my house for income and move to a country where there is very little property taxes.

If you pay $6,000 – $10,000 per year in property taxes + HOA, you can live comfortably in some parts of the world for the whole year.

[briansd1]

flu, the current estate tax exemption is $3.5 million. Most people don’t pay estate taxes. If your estate is more than $3.5 milliion, better to pass on your wealth to heirs during your lifetime.

I was responding to bearishgurl about her Chula Vista neighbors.

But I agree with you flu, most people who inherit houses free and clear don’t really need to borrow.

I’m actually counting on low property tax assessment for my retirement. I don’t want to pay anything when I’m not making money. I’ll probably rent out my house for income and move to a country where there is very little property taxes.

If you pay $6,000 – $10,000 per year in property taxes + HOA, you can live comfortably in some parts of the world for the whole year.

[briansd1]

flu, the current estate tax exemption is $3.5 million. Most people don’t pay estate taxes. If your estate is more than $3.5 milliion, better to pass on your wealth to heirs during your lifetime.

I was responding to bearishgurl about her Chula Vista neighbors.

But I agree with you flu, most people who inherit houses free and clear don’t really need to borrow.

I’m actually counting on low property tax assessment for my retirement. I don’t want to pay anything when I’m not making money. I’ll probably rent out my house for income and move to a country where there is very little property taxes.

If you pay $6,000 – $10,000 per year in property taxes + HOA, you can live comfortably in some parts of the world for the whole year.

[briansd1]

flu, the current estate tax exemption is $3.5 million. Most people don’t pay estate taxes. If your estate is more than $3.5 milliion, better to pass on your wealth to heirs during your lifetime.

I was responding to bearishgurl about her Chula Vista neighbors.

But I agree with you flu, most people who inherit houses free and clear don’t really need to borrow.

I’m actually counting on low property tax assessment for my retirement. I don’t want to pay anything when I’m not making money. I’ll probably rent out my house for income and move to a country where there is very little property taxes.

If you pay $6,000 – $10,000 per year in property taxes + HOA, you can live comfortably in some parts of the world for the whole year.

[meadandale]

[quote=flu]Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.[/quote]

I don’t know…a friend of mine is a realtor over here in Allied Gardens. He knows personally of a case where the kids did just this–they inherited a house free and clear and mortgaged it to the hilt, pulling out more and more equity to buy toys and take trips until they ended up under water and finally got foreclosed on.

[meadandale]

[quote=flu]Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.[/quote]

I don’t know…a friend of mine is a realtor over here in Allied Gardens. He knows personally of a case where the kids did just this–they inherited a house free and clear and mortgaged it to the hilt, pulling out more and more equity to buy toys and take trips until they ended up under water and finally got foreclosed on.

[meadandale]

[quote=flu]Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.[/quote]

I don’t know…a friend of mine is a realtor over here in Allied Gardens. He knows personally of a case where the kids did just this–they inherited a house free and clear and mortgaged it to the hilt, pulling out more and more equity to buy toys and take trips until they ended up under water and finally got foreclosed on.

[meadandale]

[quote=flu]Even if the home is free and clear/with no estate taxes,
if the beneficiary really needs to cash at that point when they get the home, they would most likely sell the home right there and then. Very seldomly does someone take the home because they think theuy are getting a killer deal on property taxes, pay say an estate tax on it, and then turn it around and ATM the home to death.[/quote]

I don’t know…a friend of mine is a realtor over here in Allied Gardens. He knows personally of a case where the kids did just this–they inherited a house free and clear and mortgaged it to the hilt, pulling out more and more equity to buy toys and take trips until they ended up under water and finally got foreclosed on.

[Author]

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