Proposition 19, also known as The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, is all about property tax rules. It aims to provide relief and flexibility for homeowners during critical life transitions. Here’s what you need to know:
- Family Home Transfers:
- Under the previous law, parents could transfer their primary residence to their children without triggering a reassessment of property taxes.
- Proposition 19 expands this benefit to include both the transferor’s and transferee’s principal residences. This means that if you’re selling your family home, your children can inherit the property tax basis, even if they move elsewhere in California.
- The value limit for this exclusion is the current taxable value plus $1,000,000 (adjusted biennially).
- Base Year Value Transfer for Seniors and Disabled Individuals:
- If you’re 55 years or older, severely disabled, or a victim of a wildfire or natural disaster, Proposition 19 allows you to transfer your current property tax assessment to a new home.
- Previously, this benefit was limited to the same county. Now, you can move anywhere within California and still retain your favorable tax basis.
- No adjustments are made to the transferred base year value if the replacement property is of equal or lesser value.
Why Does Proposition 19 Matter to You?
- Tax Savings: By taking advantage of Proposition 19, you can potentially save thousands of dollars in property taxes when selling your home and purchasing a new one.
- Flexibility: Whether you’re downsizing, relocating, or upgrading, Proposition 19 gives you the freedom to move without worrying about a sudden tax increase.
- Wildfire and Disaster Relief: If you’ve been affected by wildfires or natural disasters, this proposition provides much-needed relief. You can rebuild or relocate without sacrificing your tax benefits.
How Can You Benefit?
- Consult an Expert: Reach out to a knowledgeable real estate agent or tax professional. They can guide you through the process and help you make informed decisions.
- Plan Ahead: If you’re considering selling, start planning early. Understand your options and explore potential replacement properties.
- Stay Informed: Keep an eye on updates and official guidelines. Proposition 19 is a dynamic law, and staying informed ensures you maximize its benefits.
Remember, Proposition 19 is a game-changer for home sellers. It’s time to leverage these new opportunities and make your next move with confidence. If you have any questions or need personalized advice, feel free to reach out. Your dream home awaits, and Proposition 19 is here to make it a reality! 🏡
For more details, visit the California State Board of Equalization’s Proposition 19 page. Let’s make property tax work for you! 🏡🔑
