Proposition 19 Quick Guide

Buying, Selling / By

WHAT IS IT?

Proposition 19 is The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act which was approved by California voters on November 3, 2020.

HOW WILL IT AFFECT ME?

Homeowners 55 years of age and older, severely disabled, or whose home has been destroyed by wildfire or other natural disasters may be eligible to transfer the taxable value of their primary residence to a replacement primary residence:

  • Anywhere in California.
  • Of any value, but with upward adjustments if replacement value is of greater value.
  • Purchased or newly constructed within two years of sale.
  • Up to three times (previously one time), but without limitation for propertiesdestroyed by fire.For transfers of inherited property, the rules allowing properties to pass from parent to child/grandparent to grandchild, without an increase in the property tax bill, have narrowed. Now the taxable value can be transferred:
  • To only those properties used as a primary home or farm by the child or grandchild.
  • If homeowners’ exemption is filed within one year of transfer.
  • If the value of the property is less than $1M over the original tax basis. If the propertyvalue, at the time of transfer, is more than $1M over the original tax basis, some upward adjustment in assessed value would occur.

WHAT DO I NEED TO DO?

Planning ahead makes a difference. Call me and I will point you in the right direction if:

  • You are age 55 or severely disabled and would like to move.
  • If your home has been destroyed by wildfire or other natural disaster.
  • You have inherited property.

HOW CAN I LEARN MORE?

Visit www.boe.ca.gov/prop19. Or consult your tax advisor and/or contact your local tax assessor’s office to learn more about Prop 19’s provisions and eligibility rules as they apply to your specific situation.

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