Here are the basics about Proposition 19 and how you may be affected.
First, I’m not a tax expert or real estate attorney. You need to seek those professionals to answer your specific questions. Today I’m simply providing answers to the common questions. However, we can connect you to the proper people if you need further guidance.
Prop 19 eases restrictions for property tax basis transfers if you’re 55 years or older, severely disabled, or your property has had severe damage from wildfire. Before Prop 19 there were more restrictions, and you could only transfer your tax base to certain counties; now, you can transfer it anywhere in California.
Another change is that now the value of the property you’re buying doesn’t matter. It used to be that you had to buy a home of equal or lesser value. However, there will still be adjustments to property taxes if you buy a larger property. With Prop 19, you can also now transfer your tax base up to three times, whereas before you could only do it once.
If you’re considering transferring your primary residence to a child or grandchild, you need to decide as quickly as possible because it takes time for the property to be recorded, and the date of transfer is the recording date. (Again, talk to an attorney or tax specialist before doing anything.)
We can connect you to the best people to help you with transferring your tax basis. If you want our help with this or have any questions, reach out to us via phone or by visiting our website.