Whether you’re buying or selling a home, you need to know what Proposition 19 is all about.
I’m Warren Oberholser with eXp Realty. I’m located in the East Bay Tri-Valley area in Northern California. As a realtor my goal is to help both buyers and sellers get maximum results for one of their biggest investments, their home.
The material I’m going to discuss in this article is tax related. So it is essential that you verify everything first with your tax specialists so you can be properly advised.
What proposition 19 is all about? Prop 19 allows qualified homeowners to transfer their taxable value on their current primary residence to another primary residence anywhere in California. Now you’re probably going to say, “Hey, wait a minute, Warren don’t we already have a law that allows a California residents to transfer their tax base to a new residence?”
The answer is yes, proposition 60 and 90. However, these current laws are limiting as far as who can qualify for it and where the taxable base can be transferred to. By prop 19, replacing 60 and 90 allows qualified homeowners to transfer their taxable base anywhere in California. This of course offers so many more possibilities. Okay, let’s get down to the details. Who’s eligible for prop 19? One, homeowners who are 55 and older, two, homeowners are victims of natural disasters who lost their primary residence, such as many did with our recent wildfires and number three, homeowners who are severely disabled.
So how many times can a California homeowner do this? An eligible homeowner that’s 55 and older or severely disabled can use this benefit three times in their lifetime. A victim of natural disasters who lost their primary residence can use this benefit once in their lifetime. Proposition 19 takes effect April 1st, 2021. Now here’s a question I was just asked by one of my clients. What happens if the property I want to purchase as a higher value than the property I’m currently in? Here’s the answer. If the new primary residence is of greater value than your current primary residence, then the taxable base is adjusted using a formula based on the difference of the sales price of the two properties. Again, any questions you have on this new tax law, please consult with your tax specialist so you can be properly advised.
Now here’s my prop 19 bonus, if you’d like to have all this information detailed out and written format to include how Proposition 19 affects inherited properties, then send me an email request so I can send you a written report out to you. You’ll find my email below in the show notes.
Receive your written Prop 19 guidelines which include how Prop 19 affects inherited properties.
Email your request to: [email protected]
Learn all about Prop 19. Understand what it means for you! _____________________________________________________________________________
I hope you enjoy this article. Please email me any questions you may have. [email protected]
DRE # 01861944
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