You Inherit a House in California? Let's Talk Taxes (and Maybe a Little Wine)
So, you've just scored a free house! Congrats, you lucky duck! But before you start planning your housewarming party, let's talk about the elephant in the room: property taxes. You might be thinking, "Property taxes? What's that got to do with free money?" Well, my friend, California has a funny way of celebrating your good fortune.
 |
| Do Property Taxes Change When You Inherit A House In California |
Proposition 19: The Taxman Cometh
Before 2020, inheriting a house in California was like winning the lottery twice. You got a free house and kept the low property taxes. But then came Proposition 19, the Grinch who stole inheritance tax benefits. Now, when you inherit a house, the property's value gets reassessed, which usually means a gulp higher property tax bill.
QuickTip: Don’t skim too fast — depth matters.
Exceptions to the Rule (But Don't Get Your Hopes Up)
It's not all doom and gloom. There are a few exceptions where you might be able to keep the lower property tax rate:
QuickTip: Read step by step, not all at once.
- Parent to Child or Grandparent to Grandchild: If you inherited the house from your parents or grandparents and meet certain residency requirements, you might be able to keep the lower tax rate.
- Disabled Person: If you or a family member living in the house is disabled, you might qualify for a property tax exemption.
But let's be real, these exceptions are like finding a four-leaf clover. It's possible, but don't count on it.
QuickTip: Revisit key lines for better recall.
What to Do Now?
If you're facing a hefty property tax increase, you've got a few options:
QuickTip: Reading carefully once is better than rushing twice.
 |
- Sell the House: This is the nuclear option, but it could be the most financially sound.
- Rent Out the House: If you can't sell, renting out the property can help offset the increased property taxes.
- Appeal the Property Valuation: If you think the property's value was overestimated, you can appeal the assessment.
- Explore Property Tax Relief Programs: There might be some property tax relief programs available to you, so it's worth checking into.
How to...
- How to calculate property taxes on an inherited house: Use an online property tax calculator or consult with a tax professional.
- How to appeal a property tax assessment: Contact your local tax assessor's office to get information on the appeal process.
- How to find property tax relief programs: Check with your local government or a tax professional.
- How to decide whether to sell or rent an inherited house: Consider factors like the housing market, rental income potential, and your personal financial situation.
- How to cope with the emotional rollercoaster of inheriting a house: Take deep breaths, drink wine, and remember that this too shall pass.
So, there you have it. Inheriting a house in California is a bittersweet experience. But remember, even with higher property taxes, you're still ahead of the game compared to most people. Cheers to your new house (and maybe a glass of wine to soften the blow).
Disclaimer: This post is for informational purposes only and does not constitute legal or financial advice. Please consult with a qualified professional
 |
