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Seasoned Monterey Tax Attorney Advises on Property Transactions

Prudent tax planning for real estate sales and purchases in California

Anyone planning to sell or purchase real estate in California must consider the tax implications of that transaction. State tax liability may be the greatest factor determining if you comfortably can enjoy a property, develop it as you see fit, or profit from its sale. The Law Offices of William A. Brandwein provides reliable guidance to buyers and sellers of California real estate, especially in the Salinas metro area, the Monterey Peninsula, Carmel Valley, Carmel and Pacific Grove. For more than 40 years, we’ve helped clients plan properly to limit their tax exposure and manage their tax liabilities.

Franchise Tax Board withholding’s on real estate sales in California

Buyers of California real estate must withhold from the seller three and one-third percent of their purchase price, and pay that amount to the FTB as withholding’s on income, unless the sale meets certain conditions:

  1. The sale price is less than $100,000
  2. The property is the seller’s principal residence
  3. The seller is taking a loss on the transaction

Other exemptions exist for tax-deferred exchanges and involuntary conversions of property. The Law Offices of William A. Brandwein advises clients on the necessary steps to take to ensure compliance with the requirements for these exceptions. If you are an owner of several properties, you could easily fail to prove a house is your principal residence because of a technicality. We make sure you’re fully informed before you close, so you can take prudent steps to protect against liability.

Executing a tax-deferred exchange of real estate in California

With a normal real estate transaction, a seller would transfer property for cash, go buy a replacement property. Often, the first transaction would expose the seller to capital gains taxes, depleting resources for the replacement purchase. However, under §1031 of the Internal Revenue Code, the seller can essentially “swap” properties without incurring capital gains taxes. Tax-deferred exchanges are complex transactions and must take place within a strict time frame to be considered two parts of the same transaction. It takes a skilled property tax lawyer to ensure the exchange meets all the statutory requirements.

Contact a knowledgeable tax attorney for property transactions in and around Monterey, California

The Law Offices of William A. Brandwein helps clients reduce their tax liability when conducting real estate transactions. To schedule an appointment, call our Monterey office at 831-920-4630 or contact us online.

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