|If you’re a home owner and are 55 of age or older, the November election has real implications for you, especially if you are considering a move or would like to downsize.
Here’s what happened …
A slight majority of voters agreed with and voted for California Proposition 19 as the ballot measure passed by a margin of 51.10% to 48.90%.
What Proposition 19 Does:
- Will allow eligible homeowners to transfer their tax assessments anywhere within California and allow tax assessments to be transferred to a more expensive home with an upward adjustment. *As an example, if you have a home with a $400,000 tax basis, then sell that home for $800,000, then buy a home worth $1,000,000 your new tax basis will be $600,000 (the $400,000 original + the $200,000 difference between sell and new purchase).
- Increases the number of times that persons over 55 years old or with severe disabilities can transfer their tax assessments from one to three (disaster victims are allowed one transfer). It requires that inherited homes that are not used as a principal residence, such as vacation homes, businesses, or rentals, be reassessed at market value when transferred. This goes into affect starting February, however, Washington’s birthday is a Federal Holiday and is Monday, February 15, therefore, in order to take advantage of the current law which does not call for reassessment regardless of how the property is being used, transfer would need to be completed by February 12. If you need more information you should contact and estates attorney ASAP.
- Allocates additional revenue or net savings resulting from the ballot measure to wildfire agencies and counties. As with most broad measures, Prop 19 can be a plus or a minus depending on your situation.
- Allows seniors and disabled to move and transfer their tax base anywhere in California.
- Allows seniors and disabled to move and transfer their tax base up to 3 times!
- Removes the restriction of Props 60 & 90 having to buy for equal or less value than you sell.
- With Prop 19 seniors and disabled can buy a more expensive home than they sell, with an upward adjustment – see example above.
- Inherited residential property used as a second home, rental, or investment property WILL BE reassessed at current market value. This will leave many “legacy” properties vulnerable and will lead to the sale of these homes simply because the heirs cannot afford the new property tax.
Call us if you’d like to discuss how CA Prop 19 might impact your specific situation, call the Christensen Realty Group at …