 laviecharmee
Joined: 21 May 2009
Posts: 1
1.31 Dollars($)
|
 Posted: Thu May 21, 2009 8:05 am Post subject: Buying a house from my mom |
|
|
| We live in California. My mom was recently engaged and will be selling her house. She is offering me first chance to buy it for 240,000. (this is slighlty below market level) because of when she bought the house, she is covered under prop 13 and I beleive that under prop 58 she can transfer the house to me and the prop 13 would remain intact. My question is how can I do this and still get in as a first time home buyer? Does one exclude the possibility of the other? |
|
jenkin7
Joined: 04 Jun 2007
Posts: 3430
Location: Hawaii
514.35 Dollars($)
|
| Posted: Fri May 22, 2009 1:08 am Post subject: |
|
|
Hi laviecharmee,
The proposition 13 limits the maximum amount in property taxes to 1% of the assessed value of the property. This assessed value can change, but by a maximum of 2% in a year. However, a change in title will trigger a re-assessment of the property at the current market value. So, once your mom sells the house to you, it will be subject to a re-assessment. But if you had not owned a principal residence for the past 3 years, you can qualify for the first time buyer tax credit. |
|
