Inherited Portfolio in Southern California
Hey all!
My father has recently passed away leaving his modest portfolio to my two brothers and I. All of the properties are paid off, however due to the recent passing of Prop 19 we are unsure of how the tax burden will fall on us and if the portfolio can support it. Does anyone have any experience with inherited properties in southern California? What can we expect? Is there any way to avoid these taxes? Thanks in advance for any help!
Most Popular Reply
I just dont see how this is such a bad deal for homeowners or investors with properties. Most parts of the country get their properties reassessed EVERY YEAR, some states do it every two years. I have just heard recently that California, as long as you own the property never gets reassessed. Thats crazy!! So if you bought a property for 300k 20 years ago and you pay about 3k in taxes(even if it is now worth $2.5mil and 25k in taxes), you would continue to pay 3k per year for all those years. Wow. Maybe I am just a little jealous.
In Texas, properties are reassessed every year. PLUS the tax rate in most parts of San Antonio are about 2.7%, not 1%. And if the market moves up, your rental properties are going to cost WAY more next year. I guess that is why property values have not moved as much as other states like California.