state income tax
Portability Initiative is Designed to Help 55 and Over to Sell Their Homes and Buy Another
The California Association of Realtors (CAR) is attempting to qualify a ballot initiative, The Property Tax Fairness Initiative, that will restructure the way property taxes are calculated for buyers over the age of 55 (also the disabled and/or natural disaster victims).
CAR says, “A large part of the reason why (55 and overs are not moving) is that, even if they want to downsize or move closer to family, the prospect of a property tax increase of 100, 200, or even 300 percent, effectively locks our parents and our grandparents in their homes.” Thus, CAR maintains, “The Property Tax Initiative will help these homeowners to sell their current homes and move without being subjected to what is effectively a massive moving penalty”.
How will it help? Currently there are only limited conditions under which someone over 55 may transfer his or her old tax base to a newly purchased home. The Initiative would expand this.
“C.A.R.’s Property Tax Fairness Initiative would allow homeowners 55 years of age or older to transfer their Prop. 13 tax-base to a home of any price, located anywhere in the state, any number of times.” –taken from realtytimes.com 2-13-18
California Association of Realtors (CAR) has been fighting to protect underwater homeowners from facing state income tax on debt forgiven in a short sale.
Recently CAR received clarification from the IRS and the Franchise Tax Board that debt forgiven in a short sale is not income. Therefore, CAR will not be pursuing the short sale debt forgiveness provisions in SB 30.
Thanks very much to thousands of REALTORS who fought for their clients by responding to this issue. And yes, we were 2 of them.
A lot has changed on the short sale front. In fact many of the lenders are NOT even requiring that you prove a financial hardship in order to get your short sale approved. For a private and confidential consultation at our office for what steps to take to short sale your home, call or email April Greer at (951) 522-0518 or email@example.com