Prop 19 is now effective in California. The new law makes changes to existing property tax laws, so it is important for homeowners to understand how their tax obligations can change under the new rules. Business owners must also be prepared for changes to property tax assessments on corporate real estate holdings. Learn more about the changes to state property tax laws, what business owners need to do to prepare for these changes, and how a California corporate attorney can help you determine the best way to manage real estate assets held by your business. With advanced planning, your business will be prepared to meet its tax obligations without compromising its financial goals.
What Is Prop 19?
According to the Office of the San Francisco Assessor-Recorder, Prop 19 makes changes to certain state property tax benefits. The law is an amendment to the state constitution that limits certain property tax benefits to make them available to others who need them. For example, this amendment requires an owner who inherits family property to use the home as a primary residence in order to retain the lower property value assessment for tax purposes. On the other hand, a homeowner who is over 55 years of age, disabled, or the victim of a wildfire or natural disaster may transfer a low property tax base on a replacement residence up to three times. These amendments have large impacts on families, especially in the bay area where the value of homes have increased significantly for many individuals who are now looking to pass the property on to their children.
How Will Prop 19 Affect Business Owners?
So what do business owners need to do to be prepared for Prop 19? First, it is important to be prepared for any changes to your property tax assessments. Meet with a corporate lawyer or other tax professional right away to determine what tax rate will apply to all of your personal and business real estate holdings. Waiting can result in interest or penalties on top of an unplanned tax increase.
Second, develop a long-term strategy for your real estate holdings. There may be ways to reduce your tax liabilities or offset them with deductions or savings elsewhere. In today’s strong seller’s market, it may also be an opportune time to liquidate real estate assets before increased taxes are assessed on those properties. An experienced corporate lawyer can help you develop the right tax and asset strategy for your company’s specific needs. With preparation, your strategy can be adapted to meet your tax obligations without compromising your company’s financial goals.
Experienced California Corporate Attorneys for Business Real Estate Issues
The experienced California corporate lawyers at Structure Law Group have experience with all types of corporate real estate issues. We help business owners plan for property taxes, holding strategies, asset protection, and other matters. Call (408) 441-7500 to schedule a consultation or contact us online. Don’t wait to get tax advice. The sooner you have a comprehensive real estate strategy in place, the better protected your personal and corporate assets will be.