About California Proposition 13 Property Tax Information
About Proposition 13
California Proposition 13, also known as the People’s Initiative to Limit Property Taxation was an amendment of the Constitution of California enacted in 1978. California Proposition 13 made it so that the maximum amount of any tax on real estate shall not exceed one percent of the full cash value of such property and additionally restricted annual increases of assessed value of real estate to an inflation factor, not to exceed 2% per year.
Proposition 13 also prohibited reassessment of a new base year value except in cases of change in ownership, or completion of new construction. Later, in 1986 Californian’s passed Proposition 58 which also excludes from reassessment transfers of real property between parents and children, with certain limitations.
Commercial Loan Corporation specializes in helping clients who inherit properties qualify for Proposition 58 and avoid property tax reassessment when a third party loan is needed to equalize the distribution of a trust or estate. This allows you to keep a parents low Prop 13 tax base and save potentially thousands of dollars a year in property taxes. In fact, our average client saves over $6,000 a year in property taxes.
If you are inheriting home from a parent and are interested in keeping their Proposition 13 tax base, please call us at 877-464-1066.
In the State of California, real estate is typically reassessed at market value when it is sold or transferred. As a result, property taxes may increase dramatically due to the new higher assessment value. Prop 58 or Proposition 58 is a California Proposition that with limitations, grants the ability to avoid property reassessment on real estate inherited from a parent in California. With the passage of Proposition 58 in 1986, if the sale or transfer of real estate is between a parent and their child, under some circumstances, the property will not be reassessed if all Board of Equalization conditions are met and the application for exclusion is filed in a appropriate amount of time.
Proposition 58 allows the child who is inheriting the home to avoid property tax reassessment when acquiring property from their parents. The child’s taxes are instead calculated on the parents established Proposition 13 factored base year value, instead of the current market value when the property is acquired.
In some cases in order to qualify for California Proposition 58, when the home is being inherited via a trust or an estate and multiple child beneficiaries are involved, an equal distribution of assets must be made. That is where Commercial Loan Corporation comes in. Commercial Loan Corporation provides third party mortgages to trusts and estates with no personal guarantee required from the acquiring beneficiary or heir. Our trust loan or probate loan provides cash to the beneficiaries who are not inheriting the home and allows the child who is inheriting the home to keep the property and meet one of the key Proposition 58 qualification requirements. On average we help our clients save over six thousand dollars a year in property taxes in addition to eliminating the need to sell the home. This speeds up the distribution process and saves on costly realtor fees.
If you or a client needs a distribution loan to take advantage of California Proposition 58, please call 877-464-1066. We can provide you with a free cost benefit analysis and let you know how much you may be able to save by taking advantage of your Prop 58 property tax benefits.
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In addition to providing loans to trusts and estates in California, we also specializes in assisting clients with Reverse Mortgages. Reverse Mortgages are quickly becoming one of our most popular mortgage products. A Reverse Mortgage may be a great option for borrowers age 62 years and older who are looking for a more comfortable retirement. A reverse mortgage, also know as a HECM or Home Equity Conversion Mortgage allows a borrower to convert the equity they have accumulated in their home into a stable income stream or pool of funds that they can draw from when needed. This can provide security and independence when it is most needed.
As more and more baby boomers enter into retirement, Reverse Mortgages loan programs have grown in popularity. A Reverse Mortgage can enable you to tap the equity in your home and make your retirement more comfortable. The proceeds from a Reverse Mortgage can be used to pay for medical care, delay or supplement Social Security and or have additional funds every month to make retirement more enjoyable.
Commercial Loan Corporation has made the Reverse Mortgage process easy! Our qualified Reverse Mortgage specialists can answer any questions that you have and explain all of the options available to you in a no pressure environment. In some cases a Reverse Mortgage might not be your best option. We can provide you with the information needed to make an informed decision. Simply call us at 877-464-1066 so that we may assist you. You may also request additional information on Reverse Mortgages online by filling out the form located here.
Call 877-464-1066 for assistance with a Reverse Mortgage