Legal Question in Tax Law in California
Property Tax Increase?
I have a rental unit (single family residence) that is incoming producing. It is currently titled to myself. I would like to create a Limited Liability Company and put this asset into the LLC as a means of asset protection or put it into a revocable living trust and then put this as an asset into the LLC. By doing this, will my property tax for this rental increase?
3 Answers from Attorneys
Re: Property Tax Increase?
First of all, you would not want to put the trust in the LLC ... you would want to put the LLC into the trust.
As long as you own the same percentage of the LLC as you do the property, it is merely considered a change in the way you hold title, rather than a change in ownership. Therefore, if it is done correctly, there should be no increase in property taxes.
Of course, if you do it yourself and do it wrong, you could be stuck. You should seed professional advice in making these changes.
Re: Property Tax Increase?
I concur with the comments posted by Mr. Koenen. I would add that you should consult with a local estate planning attorney to discuss how you can best achieve your goals. I would also recommend that you consult a CPA or other tax consultant to determine if an LLC or a corporation is better for you from a tax standpoint.
Re: Property Tax Increase?
SEE:
http://weblinks.westlaw.com/Find/Default.wl?DB=CA%2DADC%2DTOC%3BADCCATOC&DocName=18CAADCS462%2E160&FindType=W&AP=&fn=_top&rs=WEBL6.05&vr=2.0&spa=CCR-1000&trailtype=26
http://weblinks.westlaw.com/Find/Default.wl?DB=CA%2DADC%2DTOC%3BADCCATOC&DocName=18CAADCS462%2E180&FindType=W&AP=&fn=_top&rs=WEBL6.05&vr=2.0&spa=CCR-1000&trailtype=26
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