In many cases California’s property tax rules automatically penalize insufficiently counseled individuals who inherit interests in real estate-owning legal entities from a family member upon their death. To avoid this penalty, recipients of these interests need to ensure that Form BOE 100-B is filed within 90 days of their family member’s death, a task few are prepared to undertake at that time.

Individuals who acquire real estate often do so using legal entities they control, such as corporations, LLCs, or partnerships to protect themselves from any personal liability that could arise with respect to the real estate.

California’s property tax rules require that individuals who hold interests in real estate-owning legal entities notify the Board of Equalization (“BOE”) when they transfer interests in those legal entities in two situations:

Continue Reading The BOE Death Trap: Avoid Property Tax Penalties on the Death of a Family Member

san franciscoIt seems that San Francisco may have just partially removed its exception from transfer tax that applied to gifts, but the Office of the Assessor-Recorder may not be aware. As a bit of background, transfer tax applies to transfers of interests in real property and, in some cases, to transfers of interests in legal entities that own real property. Transfer tax applies to transfers of interests in a legal entity when enough of the interests in the entity are transferred so as to result in a deemed “change of ownership” of the real property that it owns. Continue Reading Did San Francisco Eliminate its Transfer Tax Exception for Certain Gifts?