Are you a homeowner that is struggling? Have you heard about Proposition 19? Prop 19 is also known as The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. This Act has special rules to help eligible homeowners. There are two sections to Proposition, which will take effect on April 1, 2021 and February 16,2021.
How Do I Qualify?
You must be one of the following:
- 55 years of age or older
- severely disabled
- had property that was extensively destroyed by wildfire or other natural disasters
Do any of these apply to you? If so, the following expanded rules may be able to transfer the taxable value of their primary residence to a replacement primary residence. The expanded rules will take effect April 1, 2021.
So, What Are The Expanded Special Rules?
- The limit has increased to any value, but the amount above 100% is added to transferred value
- This will apply anywhere in California
- The transfer limit has increased from one time to three, but without limitation for properties destroyed by fire
- Will apply to purchased or newly constructed homes within two years of sale
Taxing Inherited Property Transfers
Beginning February 16, 2021, the rules allowing properties to pass from parent to child and grandparent to grandchild without an increase in the property tax bill will change. The taxable value can be transferred:
- Only to properties used as a primary home or farm by the child or grandchild
- When the homeowners’ exemption if filed within one year of transfer
- The value of the property is less than $1 million over the original tax basis. If the value, at the time of transfer, is more, upward adjustments in assessed value will be applied.
Keep in mind, changes may affect your title and escrow transaction. So, you may need to complete additional forms through escrow. Consult your tax advisor/assessor to discuss the rules and provisions.
Interested in more information?
Click here for more information on Proposition 19. You can also speak with our office about how Proposition 19 will affect your current situation. At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like you to get to know us. We want you to feel completely comfortable sharing intimate and difficult details of your case. This allows us to provide representation to the fullest extent of the law. Call us today to set up a free consultation.