Ruth Mills Team
Prudential California Realty
What is Mello-Roos?
In a Mello-Roos District, funds for financing public improvements and services are collected through a tax imposed on real property owners. These services may include streets, water, sewage, electricity, infrastructure, schools, museums, parks and police services for newly developing areas. Mello-Roos taxes are equally applied to all properties in the area, regardless of their value. The tax stays in effect as long as it is needed to pay for bonds, interest and administration costs, not to exceed 40 years.
How much will my Mello-Roos payment be?
The amount of the Mello-Roos tax may vary yearly, but it may not exceed the maximum amount determined with the district was created. If you purchase a new house with a subdivision, the maximum amount will be outlined in the public report.
When will my Mello-Roos payment be due?
Mello-Roos payments are usually collected with your general property tax bill.
What is a 1031 tax deferred exchange?
A 1031 tax deferred exchange lets a seller of an investment property to exchange the existing property for a "like" replacement and defer capital gains and depreciation recapture. Such an exchange opens up the possibility of generating income off of money that would have otherwise been paid to the IRS.
Click Here for more details on a 1031 tax deferred exchange.
This information has been provided as a service. Since every situation varies, it is strongly advised to seek counsel from independent tax advisors, tax attorneys, and/or CPA.
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