Will the California Tax Man Come Looking for YOU?!Overlooked Property Tax Law as a source of RevenueDuring 2011, the California Franchise Tax Board (FTB) proposed a change to Schedule CA to require the information necessary to enforce an overlooked area of the real estate tax deduction. The real estate tax deduction applies to ad valorem taxes, the real estate tax amount based on the assessed value of a property. Taxes based on a direct levy or special assessment, such as Mello-Roos or various services provided to specific properties are generally not deductible. However, many taxpayers are not aware of this distinction and in practice most individuals or their tax preparers include the total property tax on Schedule CA. Until recently the FTB didn’t have the capability to determine whether the reported number included non-deductible taxes, but a computer system planned for 2012 will give the FTB that capability. The FTB had planned to enforce compliance stating this year by adding three lines to the 2011 state tax returns that would require property owners to show their parcel number, total property tax bill and the deductible amount. On November 1, 2011 the FTB announced the decision to delay the change to Schedule CA for a year and use 2012 to educate taxpayers and preparers on the rules. The board encourages voluntary compliance for 2011 tax returns and plans to enforce the rules on the 2012 Schedule CA. As part of the education effort, the FTB created a page on their website called Understanding the Real Estate Tax Deduction that explains the rules and provides an example tax bill with the ad valorem taxes and direct levies or special assessments broken down. For the 2011 tax year, some preparers are requiring their clients to bring in the county property tax statement before they will include the deduction in the Schedule CA. The FTB estimates that the change will bring in an additional $200 million of revenue per year and that voluntary compliance could bring in $20 million this year. |
||
 |
||
Tag Archives: palos verdes estates homes for sale
Palos Verdes Estates Homes
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Lunada Bay Homes for Sale
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Palos Verdes Homes Absorption Trends
|
As always, no one can claim any clarity with a “crystal ball”. That being said, I found this article interesting and may give some clue as to what is happening nationally with real estate. Of course one of the oldest real estate sayings other than “Location, location, location” is that “All real estate is local” … meaning, it really doesn’t matter too much what is happening nationally, it’s all about what is happening on the local level. For example, real estate in the last 3 or 4 years has behaved much differently for Palos Verdes homes than it has for Riverside homes.
“The 2012 outlook is improving modestly from a disappointing 2011. Economic growth picked up in the fourth quarter of 2011 to 2.8 percent and is expected to come in at 2.3 percent for 2012, up from 1.6 percent growth for all of last year, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group…” To read more, go here http://www.fanniemae.com/portal/about-us/media/financial-news/2012/5650.html For more information on Palos Verdes homes and Palos Verdes real estate, you’re welcome to visit my website at http://www.homeispalosverdes.com |
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
Palos Verdes Estates homes in Lower Lunada Bay with Sport Court, Pool and large Flat Yard
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
I am committed to making sure you get the best customer service. Whether you choose to buy or sell real estate today, tomorrow, next week or 10 years from now, it doesn’t matter. You should feel confident and comfortable to count on me as your real estate resource for life. I promise you I will stay on the cutting edge of technology and service to make sure you have the information you need to be a more powerful real estate owner, buyer and or seller so that you get what you want, in the time you want it. Here is just one one of the many free services I offer. |
