Cal. Code Regs. tit. 18 § 15656.2

Current through Register 2024 Notice Reg. No. 25, June 21, 2024

Section 15656.2 - Encumbrances and Deductions from Market Value

If a lien (mortgage, trust deed, pledge, etc.) or other encumbrance exists on any property an interest in which is transferred, only the proper proportion of the encumbrance may be deducted from the value of the interest in determining the net market value of the property transferred. A description of a lien or other encumbrance on property transferred should include the following:

(a) Nature of lien or encumbrance.

(b) Amount payable at date of gift.

(c) Name of mortgagee, beneficiary, pledgee, or other person in whose favor the lien or encumbrance exists.

There may also be deducted from the market value of the property any consideration in money's worth, but evidence of such consideration must be submitted.

NOTE: Reference: Section 15656, Revenue and Taxation Code.

Cal. Code Regs. Tit. 18, § 15656.2