According to Lawyers Title, “Proposition 19 amends the California Constitution by expanding qualifications for the transfer of a property’s taxable value. These changes may affect your next escrow and title transaction if eligibility requirements are met. Additional documents may be required by escrow if you plan to transfer the current taxable value of the property.”
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How does Proposition 19 affect property tax base transfers?
Starting April 1, 2021, Proposition 19 allows an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster to transfer the taxable value of the primary residence to a replacement primary residence:
• anywhere in California;
• purchased or newly constructed within 2 years;
• of any value with an upward adjustment for a more expensive replacement; and
• the property tax base can be transferred up to three times for persons over 55 years old or with severe disabilities and once for wildfire or disaster victims
How does Proposition 19 affect inherited properties?
Beginning February 16, 2021, Proposition 19 narrowed its rules for parent-to-child or grandparent-to-grandchild exemption for inherited properties. The child or grandchild can transfer the taxable value of the inherited property if:
• the property is the principal residence of the child or grandchild or is the family farm;
• the homeowner’s or disabled veteran’s exemption is claimed within one year of the transfer to the child or grandchild;
• the property is used as the principal
residence and has a market value above $1 million, in this case an upward adjustment in assessed value would occur.
Please be advised this is for informational purposes only and is in no way legal advise. Questions regarding Proposition 19 should be referred to a licensed attorney or CPA.
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