Prop 19 Information

Proposition 19: The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act

Taxation of Inherited Property Transfers

Effective February 16, 2021: Prop 19 narrows the rules allowing properties to pass from parent to child and grandparents 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 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 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 you have recently inherited real estate make sure to speak to your CPA or tax attorney before this deadline.

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 primary residence:

- 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

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