The form “Claim for Reassessment Exclusion for Transfer Between Parent and Child (Proposition 58)” is a legal document issued by the Office of the Assessor for use in Los Angeles County, California. This form plays a critical role within the framework of Proposition 58, which is a constitutional amendment approved by California voters in 1986.
What Is This Form For?
This form is designed to allow the exclusion of property reassessments when real property is transferred between parents and their children. Under normal circumstances, such a transfer would trigger a reassessment of the property's value for property tax purposes, potentially leading to a significant tax increase. However, Proposition 58 permits a reassessment exclusion, meaning the property can be transferred without affecting the current tax assessment, provided that certain conditions are met. This can lead to substantial tax savings.
Why Is It Needed?
It's needed to apply for the property tax reassessment exclusion provided under Proposition 58. Without this form, property ownership transfers from parent to child (or vice versa) would be subject to reassessment at current market value, which could significantly increase property taxes.
Who Should Use It (Intended Audience)?
The intended audience for this form includes:
- Parents transferring ownership of real property to their children.
- Children receive real property from their parents.
- This applies to both principal residences and a limited amount of other property.
How Should The Form Be Filled Out?
The form should be filled out with accurate and complete information regarding the property transfer, including:
- Information about the transferor (parent) and transferee (child).
- Details of the property being transferred.
- Declaration of eligibility for the exclusion based on the relationship between the parent and child and the use of the property.
- Any other required documentation to support the claim.
What Are The Critical Pieces Of Information That The Form Requires?
Essential information required includes:
- Names and addresses of the transferor and transferee.
- Assessor's Parcel Number (APN) or legal description of the property.
- Date of transfer.
- Type of property transferred (residential, commercial, etc.).
- Declaration of primary residence, if applicable.
- Relationship between the parties involved in the transfer.
When Should It Be Submitted (Deadlines/Time Considerations)?
The form should be submitted timely, typically within three years of the date of transfer, to receive the full benefit of the exclusion. However, late filings may still receive benefits from the date of filing.
Where And How Should The Form Be Submitted?
The form should be submitted to the Los Angeles County Assessor's Office. It can be submitted:
- Online, if such an option is available and specified on the Los Angeles County Assessor's website.
- By mail to the address specified on the form or the Assessor's Office instructions.
- Submission methods should be verified on the Los Angeles County Assessor's website or by contacting the office directly, as processes may change.
How Much Does It Cost To Submit Or File The Form?
Typically, there is no fee to submit the “Claim for Reassessment Exclusion for Transfer Between Parent and Child.” However, verifying this with the Los Angeles County Assessor's Office is advisable, as policies can change.