Here is a brief break down of some of the key aspects of this complex proposition.
First off, who can take advantage of the tax portability benefits from Prop 19?
All Californians who:
Are over 55 years of age;
Are severely disabled; or
Own a home that has been substantially damaged due to wildfire or natural disaster.
For people in these groups, Prop 19 made three significant changes to the way property taxes are calculated when they sell a principal residence and move into a new primary residence. What are these changes?
Sellers in these groups can now transfer the tax basis of their primary residence to a replacement property anywhere in the State of California. Previously, inter-county transfers were done on a limited basis.
Sellers in these groups can now transfer the tax basis of their sold property to their replacement property regardless of value. Previously, transfers had to be only two properties of equal or lesser value.
Sellers and these groups may take advantage of this benefit up to three times -- and victims of wildfires and other natural disasters have no limitations. Previously, sellers could only make use of this transfer one time.
There are many nuances and changes to transferring your property tax base under this complex legislation. Please reach out to us for a summary of the impact and how it may apply to you. Of course, you should also consult with a qualified California CPA and real estate attorney, as well.