[surveyor]

That tax assessment basis transfer from one county to another is what I was talking with my attorney relative with awhile back. I didn’t understand it at the time but he was basically going to somehow transfer his tax basis and residence from San Francisco (very high) to Guam (very low). I should have grilled him further for more details. I didn’t understand the process at the time.

As for setting up the LLC with the living trusts and all that, that is way over my head. I keep promising the wife to take a look at it, but it’s been difficult…

[surveyor]

That tax assessment basis transfer from one county to another is what I was talking with my attorney relative with awhile back. I didn’t understand it at the time but he was basically going to somehow transfer his tax basis and residence from San Francisco (very high) to Guam (very low). I should have grilled him further for more details. I didn’t understand the process at the time.

As for setting up the LLC with the living trusts and all that, that is way over my head. I keep promising the wife to take a look at it, but it’s been difficult…

[surveyor]

That tax assessment basis transfer from one county to another is what I was talking with my attorney relative with awhile back. I didn’t understand it at the time but he was basically going to somehow transfer his tax basis and residence from San Francisco (very high) to Guam (very low). I should have grilled him further for more details. I didn’t understand the process at the time.

As for setting up the LLC with the living trusts and all that, that is way over my head. I keep promising the wife to take a look at it, but it’s been difficult…

[surveyor]

I haven’t come across this situation before and I only spoke of it very superficially with a lawyer related to me, so take what I say with a grain of salt.

Still, from the County’s website:

Q: Is there a filing deadline for this exclusion?

A: A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. In addition, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment.

Q: Is there anything I can do after the deadline?

A: If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.

So if your client can get the paperwork done, they may at least get their future tax bills fixed.

Now, somewhere else in the page, this was an interesting find as well:

LIVING TRUSTS

– Real property is frequently placed into a trust for income tax or inheritance purposes. Generally, the creation of a trust does not cause a reassessment for property tax purposes. For more information concerning the possible property tax consequences of a trust, please call the Assessor’s Office at (858) 505-6262.

Q: What is a trust?

A: A trust is a legal arrangement whereby property is held by one party for the benefit of another (beneficiary) for a specific length of time.

Q: Does placing real property into a trust cause a reassessment for property tax purposes?

A: Generally, placing real property into a trust is not a change in ownership that causes a reassessment as long as you are the sole owners, the trust is revocable or the beneficial interest is not transferred.

So by the wording, it is possible for someone to transfer their tax basis to their child (using the parent/child exclusion) and then transfer the property into a trust for said child…

It definitely sounds like something worth pursuing… Talk to the County people, they are generally helpful about these things. They won’t hold your hand during the process, but they will tell you what to do.

[surveyor]

I haven’t come across this situation before and I only spoke of it very superficially with a lawyer related to me, so take what I say with a grain of salt.

Still, from the County’s website:

Q: Is there a filing deadline for this exclusion?

A: A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. In addition, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment.

Q: Is there anything I can do after the deadline?

A: If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.

So if your client can get the paperwork done, they may at least get their future tax bills fixed.

Now, somewhere else in the page, this was an interesting find as well:

LIVING TRUSTS

– Real property is frequently placed into a trust for income tax or inheritance purposes. Generally, the creation of a trust does not cause a reassessment for property tax purposes. For more information concerning the possible property tax consequences of a trust, please call the Assessor’s Office at (858) 505-6262.

Q: What is a trust?

A: A trust is a legal arrangement whereby property is held by one party for the benefit of another (beneficiary) for a specific length of time.

Q: Does placing real property into a trust cause a reassessment for property tax purposes?

A: Generally, placing real property into a trust is not a change in ownership that causes a reassessment as long as you are the sole owners, the trust is revocable or the beneficial interest is not transferred.

So by the wording, it is possible for someone to transfer their tax basis to their child (using the parent/child exclusion) and then transfer the property into a trust for said child…

It definitely sounds like something worth pursuing… Talk to the County people, they are generally helpful about these things. They won’t hold your hand during the process, but they will tell you what to do.

[surveyor]

I haven’t come across this situation before and I only spoke of it very superficially with a lawyer related to me, so take what I say with a grain of salt.

Still, from the County’s website:

Q: Is there a filing deadline for this exclusion?

A: A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. In addition, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment.

Q: Is there anything I can do after the deadline?

A: If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.

So if your client can get the paperwork done, they may at least get their future tax bills fixed.

Now, somewhere else in the page, this was an interesting find as well:

LIVING TRUSTS

– Real property is frequently placed into a trust for income tax or inheritance purposes. Generally, the creation of a trust does not cause a reassessment for property tax purposes. For more information concerning the possible property tax consequences of a trust, please call the Assessor’s Office at (858) 505-6262.

Q: What is a trust?

A: A trust is a legal arrangement whereby property is held by one party for the benefit of another (beneficiary) for a specific length of time.

Q: Does placing real property into a trust cause a reassessment for property tax purposes?

A: Generally, placing real property into a trust is not a change in ownership that causes a reassessment as long as you are the sole owners, the trust is revocable or the beneficial interest is not transferred.

So by the wording, it is possible for someone to transfer their tax basis to their child (using the parent/child exclusion) and then transfer the property into a trust for said child…

It definitely sounds like something worth pursuing… Talk to the County people, they are generally helpful about these things. They won’t hold your hand during the process, but they will tell you what to do.

[surveyor]

I haven’t come across this situation before and I only spoke of it very superficially with a lawyer related to me, so take what I say with a grain of salt.

Still, from the County’s website:

Q: Is there a filing deadline for this exclusion?

A: A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. In addition, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment.

Q: Is there anything I can do after the deadline?

A: If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.

So if your client can get the paperwork done, they may at least get their future tax bills fixed.

Now, somewhere else in the page, this was an interesting find as well:

LIVING TRUSTS

– Real property is frequently placed into a trust for income tax or inheritance purposes. Generally, the creation of a trust does not cause a reassessment for property tax purposes. For more information concerning the possible property tax consequences of a trust, please call the Assessor’s Office at (858) 505-6262.

Q: What is a trust?

A: A trust is a legal arrangement whereby property is held by one party for the benefit of another (beneficiary) for a specific length of time.

Q: Does placing real property into a trust cause a reassessment for property tax purposes?

A: Generally, placing real property into a trust is not a change in ownership that causes a reassessment as long as you are the sole owners, the trust is revocable or the beneficial interest is not transferred.

So by the wording, it is possible for someone to transfer their tax basis to their child (using the parent/child exclusion) and then transfer the property into a trust for said child…

It definitely sounds like something worth pursuing… Talk to the County people, they are generally helpful about these things. They won’t hold your hand during the process, but they will tell you what to do.

[surveyor]

I haven’t come across this situation before and I only spoke of it very superficially with a lawyer related to me, so take what I say with a grain of salt.

Still, from the County’s website:

Q: Is there a filing deadline for this exclusion?

A: A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. In addition, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment.

Q: Is there anything I can do after the deadline?

A: If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.

So if your client can get the paperwork done, they may at least get their future tax bills fixed.

Now, somewhere else in the page, this was an interesting find as well:

LIVING TRUSTS

– Real property is frequently placed into a trust for income tax or inheritance purposes. Generally, the creation of a trust does not cause a reassessment for property tax purposes. For more information concerning the possible property tax consequences of a trust, please call the Assessor’s Office at (858) 505-6262.

Q: What is a trust?

A: A trust is a legal arrangement whereby property is held by one party for the benefit of another (beneficiary) for a specific length of time.

Q: Does placing real property into a trust cause a reassessment for property tax purposes?

A: Generally, placing real property into a trust is not a change in ownership that causes a reassessment as long as you are the sole owners, the trust is revocable or the beneficial interest is not transferred.

So by the wording, it is possible for someone to transfer their tax basis to their child (using the parent/child exclusion) and then transfer the property into a trust for said child…

It definitely sounds like something worth pursuing… Talk to the County people, they are generally helpful about these things. They won’t hold your hand during the process, but they will tell you what to do.

[surveyor]

I also heard that if you are using an IRA to purchase real estate, you cannot leverage, which is one of the main advantages of real estate.

[surveyor]

I also heard that if you are using an IRA to purchase real estate, you cannot leverage, which is one of the main advantages of real estate.

[surveyor]

I also heard that if you are using an IRA to purchase real estate, you cannot leverage, which is one of the main advantages of real estate.

[surveyor]

I also heard that if you are using an IRA to purchase real estate, you cannot leverage, which is one of the main advantages of real estate.

[surveyor]

I also heard that if you are using an IRA to purchase real estate, you cannot leverage, which is one of the main advantages of real estate.

[surveyor]

Bugs:

Yes, the downpayment was taken from a property here in California. However, I will be using the cash flow from the new property to pay back the downpayment so it is not a big deal.

(A lot of people spend the cash flow or use it to augment their salaries. My household runs a surplus on its own so we just use the cash flow to pay down the borrowed downpayments).

See above post with the “cash on cash” discussion. Important thing: if you are borrowing money to buy a real estate investment property, you have to look at the “cash on cash” value and decide if it is high enough. Since this property’s cash on cash number is 18%, much higher than my requirement of 9%, the property is a good enough deal to borrow money to purchase.

If the cash on cash number is at 9% or less, it is not a good candidate for borrowed money.

[surveyor]

Bugs:

Yes, the downpayment was taken from a property here in California. However, I will be using the cash flow from the new property to pay back the downpayment so it is not a big deal.

(A lot of people spend the cash flow or use it to augment their salaries. My household runs a surplus on its own so we just use the cash flow to pay down the borrowed downpayments).

See above post with the “cash on cash” discussion. Important thing: if you are borrowing money to buy a real estate investment property, you have to look at the “cash on cash” value and decide if it is high enough. Since this property’s cash on cash number is 18%, much higher than my requirement of 9%, the property is a good enough deal to borrow money to purchase.

If the cash on cash number is at 9% or less, it is not a good candidate for borrowed money.

[Author]

Posts