California Inheritance Taxes, Step-Up in Basis, Prop 19, Probate & Trust Tax Tips Explained

Are you inheriting a property in California or serving as a trustee, executor, or estate representative? In this video, Miriam Cruz, Real Estate Broker certified in Probate and Trust Real Estate, interviews Karen A. Hahn, CPA, CVA, to discuss important tax topics that may come up when a loved one passes away and real estate is involved. This conversation covers key tax considerations related to inherited property, probate, trusts, estates, and California real estate. Karen shares insight on topics such as step-up in basis, California Prop 19, California Prop 13, trust and probate tax issues, individual tax considerations, estate tax losses, and why working with a knowledgeable CPA can help families avoid costly mistakes. In this video, we discuss: Step-up in basis and why it matters when inheriting property California Prop 19 and how it may impact inherited real estate California Prop 13 and property tax considerations Trust taxes and probate-related tax issues Individual taxes vs. estate tax responsibilities How certain estate-related tax losses may potentially apply to personal taxes What trustees, executors, and beneficiaries should keep in mind When to involve a CPA during probate or trust administration Probate and trust matters can feel overwhelming, especially when families are dealing with grief, court timelines, attorneys, real estate decisions, tax questions, and financial responsibilities. My goal with this conversation is to provide helpful education so families feel more informed and prepared. I’m Miriam Cruz, a Real Estate Broker specializing in probate, trust, and senior real estate throughout the Bay Area and Central Valley. I help families, personal representatives, trustees, and fiduciaries navigate inherited real estate with care, clarity, and experience. Learn more about Karen A. Hahn, CPA, CVA: Website: https://www.khahncpa.com/ Learn more about Miriam Cruz: Website: www.mscruzrealtor.com YouTube:    / @mscruzrealtor   Disclaimer: The views and opinions shared in this video are based on our personal knowledge and professional experience. This content is for informational purposes only and should not be taken as legal, tax, or professional advice. Please consult with a qualified attorney, CPA, or tax professional regarding your specific situation. YouTube Chapters 0:00 Introduction 2:30 Common Tax Issues After Inheriting a Property 3:54 What Can Be Done Before Someone Passes Away? 6:26 Step-Up in Basis Explained — IRC Section 1014 8:52 California Prop 19 and Property Tax Changes 10:31 The Risks of Filing Taxes on Your Own 11:34 Prop 13 and California Property Tax Limits 12:09 Prop 19 Benefits for Homeowners 55 and Older 13:58 Prop 19 Rules for Children Inheriting a Primary Residence 19:30 County Reassessment and Supplemental Property Tax Bills 23:13 Step-Up in Basis and Estate Tax Exemptions 24:45 Probate vs. Trust Tax Filing Differences 25:25 Filing Individual and Estate Tax Returns: Form 1040 and 1041 27:33 Why Organizing Your Trust and Estate Plan Matters 29:37 Date of Death Valuation for Estate Purposes 37:46 Understanding Capital Gains After Inheritance 39:17 Fixing Cost Basis and Deductible Estate Expenses 40:11 How Capital Losses May Pass to Beneficiaries Through a K-1 44:21 Important Tax Documents to Gather After Someone Passes Away 47:00 How Long Should You Save Tax Records?