EXPANDED SPECIAL RULES FOR ELIGIBLE HOMEOWNERS
Effective April 1, 2021: Homeowners 55 years of age and older, severely disabled, or whose property was extensively destroyed
by wildfire or other natural disasters may be eligible to transfer the taxable value of their primary residence to a replacement
- Anywhere in California
- Of any value, but with upward adjustments if replacement is of greater value
- Purchased or newly constructed within two years of sale
- Up to three times (previously one time), but without limitation for properties destroyed by fire
TAXATION OF INHERITED PROPERTY TRANSFERS
Effective February 16, 2021: Prop 19 narrows the rules allowing properties to pass from parent to child and grandparent to
grandchild without an increase in the property tax bill. The taxable value can be transferred:
- To only those properties used as a primary home or farm by the childor grandchild
- If homeowners’ exemption if filed within one year of transfer
- If the value of the property is less than $1M over the original tax basis. If the property value, at the time of transfer, is more than $1M
over the original tax basis, some upward adjustment in assessed value would occur.
If eligible, these changes may affect your title
and escrow transaction. Additional forms may be required through escrow if you plan to transfer the current taxable value of
your property. Consult your tax advisor, and/or contact your local tax assessor’s office to learn more about Proposition 19’s provisions and eligibility rules.
Want to learn more? Visit www.boe.ca.gov/prop19
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