confusing math board

What, Exactly, Is My New Property Tax Under Proposition 19 Portability For Those 55 and Older

  • November 29, 2021
  • devinlucas

Proposition 19, new for 2021, has two main components, portability (of the current ‘prop 13’ basis) and inheritance.  This article will focus on the portability aspects.  

View Post

Read our detailed article here on the inheritance aspects of Proposition 19, which dramatically limit the ability to pass along the existing Proposition 13 property tax basis to a child or grandchild via gifting, inheritance or sale.

Questions? – Paid one-hour confidential legal consultations are conducted daily via Zoom and address virtually all questions, options, tax implications and strategies. (Book a consultation here.)

Simply put, Proposition 19 allows those 55 and older (or certain disaster victims) to sell your primary residence and transfer your existing Proposition 13 property tax basis to a new primary residence in any California County and for any price of real estate, higher or lower (though only the sale of the current residence is carried over, you simply pay an adjusted tax basis for any purchase price greater than your sales price, see below).  

The two transactions must occur within two years of each other, but it does not matter in which order.  In other words, you can buy the replacement property first, then sell.  Practically, for most people, they will have to sell their home first, in order to purchase the replacement. 

A “sale or purchase” occurs when title to the property is transferred (e.g., date of close of escrow).  

“Construction” occurs as of the date of completion.  The taxpayer must actually own and occupy the new property as his or her principal residence within this period.

Both the sale property and the replacement property must be the primary residence.

Proposition 19 replaces the earlier Proposition 60 (around since 1986) and Proposition 90 (around 1988) and is effective April 1, 2021.  Propositions 60 and 90 are now moot, replaced entirely with this new law.  You can qualify even if a property closed prior to April 1, 2021, as long as the subsequent sale or purchase takes place within two years and on or after April 1, 2021. See below FAQ for more details and examples.

Proposition 19 is an improvement on the portability laws, changing the earlier Propositions 60 and 90 to now mandate all California counties to participate (earlier, they had to opt in), allowing a replacement home of greater value (earlier, the replacement home had to be equal or lesser value) and allowing this law to be used up to three (3) times (earlier, it could only be used once). 

This presents significant potential tax savings for those wishing to move. However, other considerations, such as capital gains should be considered.

WHAT IS MY NEW TAX BILL IF I MOVE UNDER PROP 19:

Simply put… 

if your new home is “equal or lesser value” (which, actually now has the same definitions as earlier Prop 60 and 90, which is 100% of value if the new home is purchased first, 105% of value if the replacement property is purchased or newly constructed during the first year after the sale of the original property, and 110% if the replacement property is purchased or constructed during the second year after the sale of the original property) then your property tax remains the same

If your new home is more expensive than your old home, you get full credit for the value up to the sale of your old home, then simply pay ‘new’ property taxes on the difference in the purchase prices, generally at 1%, but check with your county.  

EXAMPLES:

For example, an original home was sold and had a full cash value of $1,400,000 and a factored base year value of $100,000 at time of sale. If a replacement home is purchased for a full cash value of $1,600,000, the difference of $200,000 ($1,600,000 – $1,400,000) is added to the factored base year value of $100,000. Thus, the replacement home will have a new base year value of $300,000 ($100,000 + $200,000).

For example, an original home was sold and had a full cash value of $400,000 and a factored base year value of $100,000 at time of sale. If a replacement home is purchased for a full cash value of $600,000, the difference of $200,000 ($600,000 – $400,000) is added to the factored base year value of $100,000. Thus, the replacement home will have a new base year value of $300,000 ($100,000 + $200,000).

For example, an original home was sold and had a full cash value of $4,000,000 and a factored base year value of $1,000,000 at time of sale. If a replacement home is purchased for a full cash value of $6,000,000, the difference of $2,000,000 ($6,000,000 – $4,000,000) is added to the factored base year value of $1,000,000. Thus, the replacement home will have a new base year value of $3,000,000 ($1,000,000 + $2,000,000).

FAQs:

Some initial frequently asked questions pertaining to the portability aspects of Proposition 19 from the state taxing authority, the California Board of Equalization: 

Q. Under Proposition 19, will I qualify for the base year value transfer if I purchase my replacement home now and sell my original home on or after April 1, 2021?
A. Proposition 19 requires the transfer of the base year value to occur on or after April 1, 2021. It does not require that both the primary residence be sold and the replacement primary residence be purchased on or after April 1, 2021. Therefore, in most cases, as long as either the primary residence is sold or the replacement primary residence is purchased on or after April 1, 2021, the base year value of the primary residence can be transferred to the replacement primary residence under Proposition 19. However, future legislation may impact the operation of Proposition 19 and any updates will be posted on the Board’s website.Of note, SB 539 was signed into law on September 29, 2021, clarifying many of the issues surrounded Prop 19 implementation. One key point is that a sale or purchase of a property may qualify for Prop 19 tax savings even if that transaction closed prior to April 1, 2021, as long as the subsequent sale or purchase takes place within two years and on or after April 1, 2021.

SB 539 was codified as Revenue and Tax Code sections 63.2 and 69.5. Any reference in this Q&A to these code sections is a reference to SB 539.

Q. Under Proposition 19, will I qualify for the base year value transfer if I sell my original home now and purchase a replacement home on or after April 1, 2021?
A. As answered in the prior question, as long as either the primary residence is sold or the replacement primary residence is purchased on or after April 1, 2021, the base year value of the primary residence can be transferred to the replacement primary residence under Proposition 19.  For example, a person over age 55 years old who has already sold their original home and expect to purchase a replacement home on or after April 1, 2021 would qualify for Proposition 19 base year transfer.

Q. Is Proposition 19 retroactive and would it cause property transfers that have already received the benefit of Proposition 60/90 to be reassessed?
A. The Proposition 19 operative date for the base year value transfer provisions is April 1, 2021. It is not expected that base year value transfers that have already been processed under Propositions 60/90 and Proposition 110 will be affected.

Q. If I use my one-time base year value transfer under Proposition 60/90, can I transfer that base year value three more times under Proposition 19?A. It is anticipated that three transfers under Proposition 19 will be allowed regardless of whether a property owner transferred a base year value in the past under Propositions 60/90 and Proposition 110. Future legislation may impact the operation of Proposition 19 and any updates will be posted on the Board’s website.
Q. Under Proposition 19, can I transfer my base year value to a home of any value?
A. Yes; however, if the full cash value of the replacement home is greater than the full cash value of the original home, the difference in full cash values will be added to the transferred factored base year value.

For example, an original home was sold and had a full cash value of $400,000 and a factored base year value of $100,000 at time of sale. If a replacement home is purchased for a full cash value of $600,000, the difference of $200,000 ($600,000 – $400,000) is added to the factored base year value of $100,000. Thus, the replacement home will have a new base year value of $300,000 ($100,000 + $200,000).
Q. Is Proposition 19 retroactive to disasters that occurred in 2020?
A. Proposition 19 is effective on and after April 1, 2021, and also requires that a replacement primary residence is purchased or newly constructed as a person’s principal residence within two years of the sale of the original primary residence. Proposition 19 is not dependent on the date of disaster. However, future legislation may impact the operation of Proposition 19 and any updates will be posted on the Board’s website.

Q. To qualify for the base year value transfer, does the homeowner have to be (1) age 55 or over and (2) disabled and (3) a victim of a disaster (all three)?
A. No, under Proposition 19, a homeowner may qualify for the base year value transfer under any one of the three categories listed; they do not need to meet all three categories in order to qualify.

Senate Bill 539 Implementing Legislation

SB 539 was signed into law on September 29, 2021, clarifying many of the issues surrounded Prop 19 implementation. Below are some additional questions and qalidance as per the California Association of REALTORS: 

Q1. Is there a property tax reassessment exemption for taxpayers 55 years of age or older?
A1. Yes. With the passage of Proposition 19, a homeowner who is over 55 years of age, severely and permanently disabled or whose home has been substantially damaged by wildfire or natural disaster may transfer the taxable value of their primary residence to:  

A replacement primary residence
Anywhere in the state
Regardless of the value of the replacement primary residence (with adjustments if “greater” in value)
Within two years of the sale
Up to three times (but without limitation for those whose houses were destroyed by fire)
The replacement property may purchased or newly constructed. (Cal. Rev. & Tax Code § 69.6(a) and (e)).

Q2. Must the sale of the original property and the purchase of the replacement dwelling happen at the same time?
A2. No.  A taxpayer has either two years before the sale of the original dwelling or two years after the sale of the original dwelling to purchase or construct the replacement property. For this purpose, a “sale or purchase” occurs when title to the property is transferred (e.g., date of close of escrow).  “Construction” occurs as of the date of completion.  The taxpayer must actually own and occupy the new property as his or her principal residence within this period.

(Cal. Rev. & Tax Code §§ 69.6(d)(13) and (e)(1). Property Tax Rule 462.540(a)(1)*).

* Board of Equalization Property Tax Rule 462.540 has yet to be formally adopted,

Q3. Is a property that was purchased or sold prior to April 1, 2021, eligible for Prop 19 tax savings?

A3. Yes. But only if one leg of the transaction closed prior to April 1, 2021. Either the sale of the original primary residence or the purchase or new construction of the replacement primary residence — but not both — may occur before April 1, 2021. In that case, the homeowner may transfer their tax basis under the Prop 19 rules where the corresponding sale or purchase closed on or after April 1, 2021, assuming all other conditions are met.  (Cal. Rev. & Tax Code § 69.6(b)(5)).

If both the purchase and sale closed prior to April 1, 2021, then the homeowner is NOT eligible under Prop 19. (However, it might still be possible that the homeowner qualifies for tax savings under the Prop 60/90 rules).

Q4. If a home was sold (or purchased) prior to April 1, 2021, how much time does a homeowner have to purchase (or sell) their property on or after April 1, 2021?

A4. Two years from the date of closing of the first transaction. The closing of the purchase and sale can be no more than two years apart. For example, if an original principal residence was sold on January 31, 2020, then the corresponding purchase of the replacement principal residence must close no later than January 30, 2022. It is also possible that the purchase may occur within two years prior to the sale. (Cal. Rev. & Tax Code § 69.6(b)(5)).

Q5. Is it necessary to sell the original principal residence? Can a homeowner simply buy a replacement principal residence and rent out the original principal residence?

A5. No. Prop 19 requires that the original property be sold for consideration. Renting out the original property is not an option for claiming tax benefits under Prop 19.

Q6. Can I give my original replacement property to my son, and then transfer my tax basis to the replacement property?

A6. A property that is given away or acquired by gift or devise will not qualify because nothing of value was exchanged. Proposition 19 requires a “sale” of the original property and a “purchase” of a replacement dwelling. Sale and purchase are statutorily defined as a change in ownership for consideration. This is a two-part test:

The property must be subject to change in ownership; and

Something of value must be exchanged for the property.
Thus, transactions which are excluded from the definition of “change of ownership” will not qualify. (Rule 462.540(a)(3)(B)*). The only exceptions are transactions in which the original property was transferred to a purchaser claiming an exemption under Prop 19 or in which the purchaser was claiming an exemption based on destruction of their own original property.

The list of transactions that do not count as changes of ownership is long, a summary of which can be viewed in this BOE Frequently Asked Question. See the third question, “What constitutes a change in ownership? Are there any exclusions from reassessment?” https://www.boe.ca.gov/proptaxes/faqs/changeinownership.htm

* Board of Equalization Property Tax Rule 462.540 has yet to be formally adopted.

Q7. If the replacement dwelling is purchased or constructed before the original property is sold, can the base-year value be transferred at the time of the purchase or construction?
A7. No.  The base-year value of the original property cannot be transferred to the replacement dwelling until the original property is sold.  In this case, the taxpayer would pay taxes on the new residence based on its purchase price until the old residence is sold.  (Cal. Rev. & Tax Code § 69.6(b)(5).)

Q8. What sort of property is eligible for this reassessment exemption?
A8. This exemption is available for any dwelling owned and occupied by a taxpayer as his or her principal residence. The dwelling may be a single-family home, a unit in a common interest development (e.g., co-op, condo, townhouse) or a mobilehome, and properties with ADUs or junior ADUs where any of the units is occupied as a primary residence.  (Cal. Rev. & Tax Code §§ 69.6(d)(3)(4)(5) and (9)). Even multiunit property is eligible. But the tax advantage is based on the ownership interest of the homeowner since each unit of a multiunit dwelling is considered as a separate replacement dwelling. (RTC § 69.6(d)(3)).

Q9. If there is an “accessory dwelling unit” (ADU) on the property, does that count as a multiunit dwelling?

A9. No. C.A.R. was able to include a provision in SB 539 that benefits owners of property with an ADU or Junior ADU by allowing such owners to transfer the entire tax basis of the property regardless of the additional units. But only if they meet the criteria as follows:

An original dwelling or replacement dwelling is not treated as a multiunit dwelling if:

(A) there is a dwelling unit on the property,

(B) the only other units on the real property are accessory dwelling units or junior accessory dwelling units,

(C) any accessory dwelling units and junior accessory dwelling units are not separately alienable from the title of any other dwelling unit on the property, and

(D) the claimant occupies one of the structures as their primary residence.

(Cal. Rev. & Tax Code § 69.6(b)(5)).

Q10. Under what circumstances can a mobilehome owner qualify for this reassessment exemption?
A10. As long as the mobilehome is subject to property taxation and the other requirements stated above are met, the taxpayer is eligible whether he or she owns the mobilehome only, or both a mobilehome and the land beneath it.  If either the mobilehome or combination of mobilehome and land on which it is situated constitutes a taxpayer’s original property, the assessor will transfer to the taxpayer’s replacement dwelling the base-year value of the mobilehome or the base-year value of the mobilehome and the land, whichever is appropriate.  Land owned by the claimant includes a pro-rata interest in a resident-owned mobilehome park.  (Cal. Rev. & Tax Code § 69.6(d)(3) and (4).).

Similarly, if either the mobilehome or mobilehome and land constitutes a taxpayer’s replacement dwelling, the assessor will transfer the base-year value of the original property either to the mobilehome or to the mobilehome and land, as is appropriate.  However, land constituting a part of the replacement dwelling includes only an “area of reasonable size which is used as a site for a residence.”  (Cal. Rev. & Tax Code §§ 69.6(d)(3) and (4).).

Q11. May any firm, partnership, association, corporation or other legal entity transfer base-year value pursuant to this legislation?
A11. This exemption is limited to individual taxpayers but includes those individuals who are present beneficiaries of a trust.  (Cal. Rev. & Tax Code §§ 69.6(d)(11).).

Q12. Must a taxpayer actually live in the original property or the replacement property in order to be eligible for this exemption?
A12. In order to claim this exemption, a taxpayer must be both an owner and resident of the original property either at the time of the sale of that property, or within two years of the purchase or new construction of the replacement dwelling. Moreover, a taxpayer is not eligible for the tax relief until he or she actually owns and occupies the replacement dwelling as his or her principal place of residence.  (Cal. Rev. & Tax Code §§ 69.6(b)(2) and (4)).

Q13. In order to be eligible for the Prop 19 tax savings is it also necessary to claim the homeowners’ exemption?

A13. Yes. Either claim the homeowners’ exemption or otherwise be eligible for the homeowners’ exemption (unless the property is already receiving the exemption because of an exemption claim filed by the previous owner). Eligibility for the disabled veterans’ exemption also qualifies. (Cal. Rev. & Tax Code § 69.6(b)(4) and (e)(11)).

Q14. Can I have a co-owner on title and still qualify to transfer my base year value under Proposition 19?

A14. Yes, there is no requirement that the homeowner who is over 55, or severely and permanently disabled, or a victim of a wildfire be the sole owner of either the original primary residence or the replacement primary residence.  (Letter from Deputy Director, David Yeung, May 11, 2021. https://www.boe.ca.gov/proptaxes/pdf/lta21019.pdf).

Q15. Is this exemption also available to taxpayers who are co-owners of the original property, such as joint tenants, tenants-in-common, or joint owners of community property?
A15. Yes.  If a replacement dwelling is purchased or constructed by all of the co-owners and each co-owner retains an interest in the replacement dwelling, only one co-owner needs to be at least 55 and use the property as a principal residence in order for the property to qualify for the reassessment exemption. (Rule 462.540(f)(1)*).

* Board of Equalization Property Tax Rule 462.540 has yet to be formally adopted,

Q16. If each of the two or more co-owners of the original property purchases or constructs a separate replacement dwelling, is each of them eligible for the exemption?
A16. No.  Only one of the co-owners can take advantage of this reassessment exemption.  They must determine by mutual agreement which one it will be.  (Rule 462.540(f)(2)*).

* Board of Equalization Property Tax Rule 462.540 has yet to be formally adopted,

Q17.  If each of the two or more co-owners of a multiunit building live in separate units of the building and each of them purchases or constructs a separate replacement dwelling, is each of them now eligible for the exemption?
A17. Yes. Each unit of a multiunit dwelling shall be considered a separate original property or separate replacement property.  (Cal. Rev. & Tax Code § 69.6(d)(3) and (4)).

Q18. May a taxpayer transfer the base-year value to a replacement property multiple times?
A18. Yes.  A taxpayer may take advantage of this law three times.  However, this limitation shall not apply to claimants who are victims of wildfire or natural disaster.(Cal. Rev. & Tax Code § 69.6(b)(6)).

Q19. If a taxpayer has already transferred their tax basis one time under the prior law Prop 60/90, does that count toward the three times?

A19. No. The three times is applicable to transfers based on Prop 19. ((Cal. Rev. & Tax Code § 69.6(b)(6)).

Q20. In the case of married taxpayers, must both spouses be at least 55 years old in order to qualify for this exemption?
A20. No.  As long as the spouse who is at least age 55 is on title to both the original primary residence on its date of sale and the replacement primary residence on its date of purchase, then the spouse who is at least age 55 will qualify to transfer the base year value, assuming all other requirements have been met. It does not matter if the other spouse is not 55 or older.

Q21. What happens if two replacement dwellings are separately purchased or constructed by current or former spouses who held the original property as community property? Can each spouse take the taxable basis with them to their new replacement property?

A21. No. If two or more replacement primary residences are separately purchased or newly constructed by two co-owners who held the primary residence as community property, and both    spouses would otherwise be an eligible claimant, only one spouse shall be eligible under this section. They shall determine by mutual agreement which one of them is eligible. (Rule 462.540*).

* Board of Equalization Property Tax Rule 462.540 has yet to be formally adopted,

Q22. At what point in the transaction must the taxpayer be 55 years old in order to qualify for the exemption?
A22. The taxpayer on title must be 55 years old at the time of the sale of the original property (Cal. Rev. & Tax Code § 69.6(b)(3)). It does not matter how old the taxpayer was when the replacement was purchased. A taxpayer who purchases a replacement property at 54 years of age but then sells the original property at 55 will qualify.

Q23. Must a “claimant”– that is, person claiming the property tax exemption– prove that the age requirement has been satisfied?
A23. Yes. The Board of Equalization form requires that you provide “valid identification with date of birth” and certification under penalty of perjury that the age requirement is satisfied.  See their form for claiming the tax portability tax savings. https://www.boe.ca.gov/proptaxes/pdf/sample-boe19b.pdf

Q24. If any portion of the replacement dwelling, or any portion of the land on which it is situated, is located in a county other than the one in which the original property is located, is the taxpayer still eligible for this exemption?
A24. Yes. Under Proposition 19, a taxpayer who is 55 years of age or older may transfer their principal residence anywhere in the state — regardless of whether a county has approved such transfers — and still retain their original tax basis (with adjustments if the purchase price of the replacement property is of greater value).

Q25. Does a taxpayer get any property tax relief if the replacement dwelling is not of “equal or lesser value”?
A25. Yes. Under Proposition 19, a taxpayer who is 55 years of age or older may transfer their principal residence anywhere in the state — even if the property is of “greater” value — and still obtain a tax savings. However, if the replacement property is greater in value than the tax basis would be adjusted upward. The adjustment to taxable value of the replacement primary residence is calculated by adding the difference between the full cash value of the original primary residence and the full cash value of the replacement primary residence to the taxable value of the original primary residence.

Q26. What is the definition of “equal or lesser value”?
A26. If the replacement dwelling is purchased or newly constructed prior to the sale of the original property, then “equal or lesser value” means the full cash value (i.e., sales price) of the replacement dwelling up to 100% of the full cash value (sales price) of the original property.

If the replacement property is purchased or newly constructed during the first year after the sale of the original property, then “equal or lesser value” means the full cash value of the replacement property up to 105% of the full cash value of the original property.

If the replacement property is purchased or constructed during the second year after the sale of the original property, then “equal or lesser value” means the full cash value of the replacement property up to 110% of the full cash value of the original property.

For example, let’s say the original property closed on January 1, 2022, for $500,000. A replacement property is of equal or lesser value if it is purchased within two years prior to that date at no more than $500,000. If it is purchased or constructed on or before January 1, 2023, then its full cash value should be no more than $525,000. And if it is purchased or constructed on or before January 1, 2024, then its full cash value should be no more than $550,000. In all of these examples, the replacement dwelling is of “equal or lesser” value and the tax basis may transfer without adjustment.
(Cal. Rev. & Tax Code § 69.6(d)(13) and (e)(1)).

Q27. Is the “full cash value” the sales price?

A27. “Full cash value” is presumed to be the purchase price unless it is established by evidence that the real property would not have transferred for that purchase price in an open market transaction. (Revenue and Taxation Code section 110(b)).

Q28. Can the buyer agree to pay all of the commissions and in exchange obtain a reduction in purchase price for the purpose of lowering the full cash value on the purchase of the replacement property?

A28. The Preliminary Change of Ownership form specifically requires the buyer to disclose any commissions not included in the purchase price. So, unless the buyer is intending to commit perjury in writing directly to an agency of government, then this scheme for reducing property taxes will not work.

Q29. What does “taxable value” mean?

A29. Under SB 539 “Taxable value of the original property” means its base year value. It is determined in accordance with Revenue and Taxation Code Section 110.1, increased annually by the Proposition 13 inflation factor (2 percent maximum), determined as of the date immediately prior to the date that the original property is sold by the taxpayer. (Cal. Rev. & Tax Code § 69.6(d)(2)).

Q30. What is the “taxable value” that is transferred to the replacement dwelling, assuming the replacement dwelling is of equal or lesser value?
A30. If the replacement property is of equal or lesser value to the original property, then the taxable value of the replacement property is deemed to be the taxable value of the original. (Cal. Rev. & Tax Code § 69.6(d)(2) and (e)(2)).

Q31. What is the “taxable value” that is transferred to the replacement dwelling, assuming the replacement dwelling is of greater value?

A31. If the replacement property is of greater value to the original property, then the taxable value of the replacement property is be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement property to the taxable value of the original property. (Cal. Rev. & Tax Code § 69.6(d)(2) and (e)(3)).

For example,

Suppose the original property has a taxable value of $500,000, and
Suppose the original property sells for $900,000.
But the replacement property is purchased for $1,000,000.
So, the taxable value of the replacement would be:
The taxable value of the original property — $500,000
Plus

The difference between $1,000,000 and $900,000 — that is, $100,000.

Therefore, the total taxable value of the replacement property would be $600,000 ($500,000 + $100,000).
Q32. When does this adjustment of the taxable value of the replacement dwelling take place?
A32. It is the latter of the date the original property is sold, the date the replacement dwelling is purchased, or the date construction of the replacement dwelling is completed.  (Cal. Rev. & Tax Code § 69.6(e)(1)).

Q33. What if the taxpayer purchases a replacement property, is granted a transfer of base-year value from his or her original residence, and then performs new construction on the replacement property, will the transfer apply to the replacement property, as improved, or will the new construction trigger a reassessment?
A33. There will be no reassessment on the improved property so long as:

The new construction is completed within two years of the date of sale of the original property and the owner provides a notice of completion to the assessor in writing within 6 months after completion; and
The fair market value of the additional construction on the date of completion plus the full cash value of the replacement dwelling on the date of acquisition is not more than the full cash value of the original property.
(Cal. Rev. & Tax Code § 69.6(e)(7)).

Q34. What if a taxpayer does not want to transfer his or her tax basis to the new home? Is the original tax basis automatically transferred?
A34. No.  The exemption applies only if the taxpayer decides to take the exemption and completes the required form from the local county assessor’s office (Cal. Rev. & Tax Code § 69.6(e)).

Q35. What is the time limit for filing an exemption claim?
A35. A claim for exemption from reassessment pursuant to Proposition 19 must be filed within three years of the date the replacement dwelling is purchased or the construction of the replacement dwelling is completed. (Cal. Rev. & Tax Code § 69.6(c)(1)).

Q36. Is it possible for a taxpayer to rescind a claim for transfer of base-year value after having filed it with the county assessor’s office?
A36. Unclear. The law pertaining to Prop 60/90 specifically permits a rescission of a claim. But SB 539 identifies no such right or procedure.

——–

If you qualify for the new Prop 19 exclusion, you must file the appropriate forms with the County Assessor within the prescribed times.

Contact your local County Assessor’s office for additional questions and forms.

You can book a paid ($295) one-hour confidential legal zoom consultations with our office to address virtually all questions, options, tax implications and strategies. (Book a consultation here.)

– Devin Lucas

Author Devin R. Lucas is a Real Estate Attorney, Broker and REALTOR®, specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individual and investors in residential real estate.

Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in California intra family transfers using all aspects of Propositions 13, 58, 193, 60, 90 and new Proposition 19Learn more about how Lucas Real Estate may help your family transfer by clicking here.

Questions? – Paid one-hour confidential legal consultations are conducted daily via Zoom and address virtually all questions, options, tax implications and strategies. (Book a consultation here.)

Lucas Real Estate
Real Estate Law | Real Estate Transactions | REALTORS®
lucas-real-estate.com | devin@lucas-real-estate.com | BRE No. 01912302
949.478.1623 office | 888.667.6038 fax
2901 West Coast Highway Suite 200
Newport Beach | California | 92663-4023

Official Site | LinkedIn | Facebook | Yelp | Avvo | Zillow |

Sources:

-California Board of Equalization (https://www.boe.ca.gov/prop19)

-California Association of REALTORS, Property Tax-Exemptions From Reassessment and Prop 19 Implementing Legislation.

-Cal. Rev. & Tax Code §§ 69.6(d)(13) and (e)(1). 

-California Board of Equalization  Property Tax Rule 462.540(a)(1)

-IRS Topic No. 701, Sale of Your Home (https://www.irs.gov/taxtopics/tc701).

-IRS Publication 523, Selling Your Home (https://www.irs.gov/publications/p523)

—-Disclaimer —-

The content on this blog is for informational purposes only. Nothing on this blog should be construed to be legal advice, and you should not act or refrain from acting on the basis of any content on this blog without seeking appropriate legal advice regarding your particular situation, from an attorney licensed to practice law in your state. The content on this blog is not guaranteed to be correct, complete, or up to date. Devin R. Lucas’ office is in Newport Beach, California and is only licensed to practice law in California. Please be advised that Devin R. Lucas only provides legal services or advice pursuant to a written legal services agreement. The content on this blog is not intended to, and does not, create an attorney-client relationship between you and Devin R. Lucas, nor does our receipt of an email or other communication from you. Some jurisdictions may consider this site to constitute attorney advertising; accordingly, please be advised this is an advertisement.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that, to the extent this communication (or any attachment) addresses any tax matter, it was not written to be (and may not be) relied upon to (i) avoid tax-related penalties under the Internal Revenue Code, or (ii) promote, market or recommend to another party any transaction or matter addressed herein (or in any such attachment).

devinlucas