Proposition 19 – Big Changes to Inheritance Rules, Tax Basis Next Year (Over 55+ Years)
by Lynne (Watanabe) MacFarlane
Proposition 19 big changes to inheritance rules, as well as transferring your tax basis after a sell start Spring 2021.
Inherited Property: Effective February 16, 2021:
Prop 19 requires inherited homes that are not used as primary residence (such as rentals), will be reassessed at market value when transferred to children or grandchildren. It appears this will make it harder for some investment property owners to hold onto their inherited real estate.
Homeowners 55+: Effective April 1, 2021:
Prop 19 allows homeowners 55 and older to transfer their tax assessments anywhere within the state of California to a primary residence of equal value with no property tax increase, or a more expensive primary home of with an upward adjustment within 2-years of the sale of the original primary residence.
Call me if you have questions, want to discuss solutions, or have any other real estate needs.