Mark Senick Attorney at Law

New tax reassessment exclusion for co-owners of real property

There is very good news for partners owning real estate. Effective Jan. 1, 2013, there will be no reassessment for tax purposes upon the death of a co-owner in real property if there were only two persons who were on title to the property, they had both owned the property exclusively and resided in it for at least one year, and the surviving co-owner inherited all of the deceased co-owner’s interest in the property. There is no requirement under this provision that the co-owners be married or registered as domestic partners as of the date of death. This new law will protect many long-term partners who chose for whatever reason to not marry or register from being hit with tax increases on their residences. Revenue and Taxation Code §62.3.