Principal John Hartog examines the recent passage of Proposition 19 and its various tax implications. Eliminating the so-called “Lebowski Loophole,” the proposition applies to transfers of residences occurring on or after Feb. 15, 2021. However, Prop 19 does create benefits for certain taxpayers, and John explores these new criteria.
High property values in California highlight the need for careful property tax planning. If you have owned your property for many years, it is likely that your property's assessed value for property tax purposes is significantly lower than today's fair market value. If your property should be reassessed, you or your family members could be faced with a significant increase in the annual property tax.
John Hartog explains Common Estate Planning Mistakes & How to Avoid Them
If you practice in parts of the United States where wealth is more concentrated, such as New York, Los Angeles and the San Francisco Bay Area, you may very well have clients with taxable estates.