California-System_2 -- Personal property exemption limit?

[sadhobbit]

For personal property exempted under 703.140(b)(3), the limit is $525 per item. Is there a aggregate total limit for all items exempted under this statute or is it theoretically infinite? Is the wildcard exemption under 703.140(b)(5) in addition to the total value of the (b)(3) items?

Example: all of my items exempted under (b)(3) total $7500. The wildcard exemptions available to me under (b)(5) are $1100 plus $20,725 (I have no real property -- I rent), therefore a total available wildcard value of $21,825. Is the wildcard total value reduced by the $7500 personal property value, or is the $7500 exemption IN ADDITION to the wildcard value?

[arami008]

Do you know if the wildcard including the homestead of 20k can be used for cash or a tax refund?

[DebtStinks]

For personal property exempted under 703.140(b)(3), the limit is $525 per item. Is there a aggregate total limit for all items exempted under this statute or is it theoretically infinite?

It looks like 703.140(b)(3) is unlimited but you might just want to keep it within what is Reasonable & Necessary to be safe.

"Reasonable & Necessary" refers to a judicial determination that the asset is adequate and appropriate to the debtor’s specific lifestyle and the asset’s intended use. Any party objecting to the exemption has the burden of proof. FRBP 4003(c).

Is the wildcard exemption under 703.140(b)(5) in addition to the total value of the (b)(3) items?

Yes this is in addition to the (b)(3) items since they would be covered by that exemption. I guess if you went above what is "Reasonable & Necessary" you would then have to cover the excess with your wildcard.

So you are correct that if you don't have any equity in your home that you need to protect then you get the total of $21,825 ($1,100 + $20,725) in wildcard exemptions.

[DebtStinks]

Do you know if the wildcard including the homestead of 20k can be used for cash or a tax refund?

Yes the wildcard can be used to protect cash.

[arami008]

Yeay..thanks DEBTSTINKS.

At least I will be able to keep some much need cash from our tax return. So my next question is

Do I have to wait to receive the actual refund and spend it first or should I just go ahead and file?

Thanks.

[DebtStinks]

It is my understanding that the value of the anticipated tax refund is considered an asset. Once you hit Jan. 1 the amount that you overpaid on taxes for the previous year belongs to you (an asset) regardless of when you file. This is something to discuss with your laywer. You would want to make sure you have enough room in your exemptions to cover the refund.

Or I guess you can wait to file until you have received the refund and spent it on accpetable exempt items.

[ready2puke]

Its yours if you exempt it and you can do whatever you want but yes if you say bought a car you'd have to exempt that...

[ready2puke]

I sure think your safe with 7500 for your stuff. I think anything under 10k should be ok...

[jktrading]

I was under the impression from my attorney that $21,825 was the TOTAL you could exempt. It could be a mixture of all things, including cash. We were around the 18K mark on everything. Of course we are talking garage sale pricing of items. For our vehicles, we used trade in values.

[DebtStinks]

I was under the impression from my attorney that $21,825 was the TOTAL you could exempt. It could be a mixture of all things, including cash. We were around the 18K mark on everything. Of course we are talking garage sale pricing of items. For our vehicles, we used trade in values.

$21,825 is your TOTAL wildcard exemption. But you also get $3,300 for a car, household items are another separate exemption, $1,350 for jewelry, $2,075 for tools of the trade, etc. The wildcard is for anything that doesn't fit into the other exemption areas. Just google "california exemption system 2" and you should find some links that list all the exemptions.