Homeowner’s Guide to Prop 19
Proposition 19 - The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act
Property Tax Assessment of Inherited Properties:
Prop 19 tightens the rules allowing property transferred from a parent or grandparent to a child or grandchild without an increase to the property tax bill. Under new rules, the taxable value can be transferred when:
A child or grandchild uses the home or farm as a primary residence and files for an exemption within one year of the transfer date.
The value of the property is less than $1M over the original tax basis. At the time of transfer, if the property value is more than $1M over the original tax basis, then an increase in tax basis would occur.
Special Rules for Eligible Homeowners:
Prop 19 expands special rules for those 55+, disabled, and those impacted by wildfire or natural disasters. Now homeowners may be eligible to transfer the taxable value of their primary residence to a replacement primary residence. Homeowners can do so anywhere in California, when purchasing a home or newly constructing principal residence within 2 years of sale, up to three times (no limits for those impacted by wildfire/natural disaster), and with no value limits imposed however an adjustment will be made if the replacement property is of greater value.
To discuss how Prop 19 can benefit you, give me a call!
-M.D.
A San Diego Real Estate Blog does not provide tax advice. The author recommends consulting with your own qualified tax professional for your personal tax advice.