Looking for advice on California property transfer with both property tax and income

[Victor Valencia]

Current Situation:

• Dad (72, fully retired) owns rental property in Central Valley, CA
• Property current market value: ~$260K
• Dad's tax basis: ~$120K (family transfer years ago)
• Current property taxes: ~$1,200/year
• Rental income: $1,750/month
• I have LLC for real estate investing and want to use this property for DSCR loan

Primary Questions:

Property Tax (Prop 19):

1. Will property get reassessed from current $1,200/year to ~$2,600/year if transferred to me?
2. Any parent-child exclusions still available for rental property under Prop 19?
3. Does it matter if dad gifts vs sells the property for reassessment purposes?
4. LLC ownership strategies - could dad transfer to his LLC first, then transfer LLC ownership to avoid reassessment?

Income Tax Consequences: 5. If dad gifts property to me - what are his gift tax obligations on $260K property? 6. If dad sells to me at his $120K basis - gift tax on the $140K "discount"? 7. What happens to depreciation dad has claimed over the years? 8. Should this go into my existing LLC or stay in personal name initially?

Alternative Structures: 9. Dad keeps ownership, I manage everything - any tax issues with rental income going to 72-year-old on Social Security? 10. Gradual ownership transfer over multiple years to spread tax impact? 11. Any benefit to waiting until inheritance vs lifetime transfer?

Business Context:

• Need clean ownership structure for DSCR lending (debt service coverage ratio loan)
• Dad willing to cooperate but wants to minimize his tax burden
• I want to avoid $1,400/year property tax increase if possible
• Both California residents

Goal: Transfer ownership for business purposes while minimizing total tax consequences for family.

Any California tax professionals, CPAs, or experienced real estate investors dealt with similar Prop 19 situations? Particularly interested in creative but legitimate structures that work within current law.

Thanks for any insights!"