Dar-Mardan-Realtor-CPA
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Proposition 19 in California allows eligible individuals aged 55 or older, disabled, or those who lost their home in a natural disaster to transfer their property tax assessment to a new home, regardless of its market value. However, when it comes to "gray divorce," where both spouses are over 55 and decide to sell their marital home, complexities arise.
In this situation, both husband and wife may wish to split the profits from the sale and buy new homes. However, Proposition 19 only permits one spouse to transfer their tax basis from the old home to the new one. While the guidelines recommend a mutual agreement, tax authorities usually do not verify this arrangement. Essentially, the first person to transfer the property tax basis to a new property can take advantage of this rule.
It's important for divorcing couples to carefully consider their options and make informed decisions to retain favorable property tax rates. Seeking advice from a professional is highly recommended, as tax laws can be complex and subject to change. Understanding the rules and implications of Proposition 19 will help homeowners make the most of its opportunities and financial advantages.
In conclusion, Proposition 19 presents significant tax benefits for eligible California homeowners. However, in a "gray divorce" scenario, thoughtful planning and expert guidance are essential to navigate the complexities and ensure both parties optimize their tax savings when purchasing new homes.
About the Author
Dar Mardan, a seasoned realtor at Pacific Sotheby's International Realty, is your guide to all things real estate in sunny Orange County. With an emphasis on informed decisions and an array of knowledge spanning real estate, tax strategies, trusts, and more, Dar turns learning into an adventure. Alongside his talented wife, Vida, they offer a comprehensive, personalized approach to serve clients' real estate needs. Trust Dar and Vida to turn your real estate dreams into an extraordinary reality!
In this situation, both husband and wife may wish to split the profits from the sale and buy new homes. However, Proposition 19 only permits one spouse to transfer their tax basis from the old home to the new one. While the guidelines recommend a mutual agreement, tax authorities usually do not verify this arrangement. Essentially, the first person to transfer the property tax basis to a new property can take advantage of this rule.
It's important for divorcing couples to carefully consider their options and make informed decisions to retain favorable property tax rates. Seeking advice from a professional is highly recommended, as tax laws can be complex and subject to change. Understanding the rules and implications of Proposition 19 will help homeowners make the most of its opportunities and financial advantages.
In conclusion, Proposition 19 presents significant tax benefits for eligible California homeowners. However, in a "gray divorce" scenario, thoughtful planning and expert guidance are essential to navigate the complexities and ensure both parties optimize their tax savings when purchasing new homes.
About the Author
Dar Mardan, a seasoned realtor at Pacific Sotheby's International Realty, is your guide to all things real estate in sunny Orange County. With an emphasis on informed decisions and an array of knowledge spanning real estate, tax strategies, trusts, and more, Dar turns learning into an adventure. Alongside his talented wife, Vida, they offer a comprehensive, personalized approach to serve clients' real estate needs. Trust Dar and Vida to turn your real estate dreams into an extraordinary reality!