Maximizing Your Parent-Child Exclusion

Introduction – Why the Parent Child Exclusion is Important California real estate owners pay property taxes based on the net assessed value of their property at a rate of around 1.2% per year. For example, if the net assessed value of your home is $1,000,000, your property tax bill is likely around $12,000 per year. There is often great disparity between net assessed value and fair market value as a result of the voter initiative referred to as Proposition 13. Proposition 13 “caps” the annual increase...