Proposition 19 – Big Changes to Inheritance Rules, Tax Basis Next Year (Over 55+ Years)

Proposition 19 big changes to inheritance rules, as well as transferring your tax basis after a sell start Spring 2021.

Is it time to sell your vacation home?
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.

I’m here to help you find what’s best for you

Lynne MacFarlane Homes

Lynne Watanabe MacFarlane, MCDM, SRES Realtor

Intero | Berkshire Hathaway affiliate

PFAC Silicon Valley affiliate

Call 831-346-2743

Lmacfarlane@intero.com


Posted on December 12, 2020 at 8:30 am
Lynne (Watanabe) MacFarlane | Posted in Retirement, Tax, Tax Relief | Tagged , , , ,

Should You Buy A Retirement Home Sooner Rather Than Later? [video]

 

Should you buy a retirement home sooner


Posted on October 21, 2020 at 8:38 pm
Lynne (Watanabe) MacFarlane | Posted in investors, Real Estate, Renovation, Retirement, SANTA CLARA COUNTY, Sellers Market, Tax, Tax Relief, Video | Tagged , , , ,

CA Prop 60/90: Transfer of Base Year Value for Age 55 & Over

Happy 2020!

Hi friends~ As we head into another property tax season, it is important for homeowners and investors to better understand CA’s Proposition 60 and 90 (Prop 60 & 90), which provide certain tax relief for qualified homeowners age 55 or over.

Understanding Prop 60 & 90

Prop 60 & 90 are initiatives both passed by California voters and amend section 2 of Article XIIIA of the CA Constitution. They provide property tax relief by preventing reassessment by allowing qualified senior citizens to sell their primary residence and transfer the base year value of that property to a replacement primary residence worth the same or less within two years of the transfer.
Proposition 60 & 90essentially have the same provisions and qualifications, however Prop 60 applies intra-county, which means the transfer is within the same county, whereas, Prop 90 is inter-county and applies to transfers from one county to another county in California, if the county where the replacement property is located has enacted Proposition 90 to authorize such transfer. According to the Board of Equalization, as of Nov. 7, 2018, ten California counties that have adopted Proposition 90.
  • Alameda

  • Los Angeles

  • Orange

  • Riverside

  • San Bernardino

  • San Diego

  • San Mateo

  • Santa Clara

  • Tuolumne

  • Ventura

*See below for a list of certain requirements that must be met before a person can take advantage of this tax relief.
Eligibility Requirements
  • Age – The claimant or a spouse residing with claimant, must be at least 55 years old when the original property is sold.
  • One-time benefit – The is a one-time benefit. If Prop 60 or Prop 90 relief was filed and received, neither claimant nor spouse are eligible for filing again.
  • Primary Residence or Disabled Veterans’ Exemption – The original property must have been eligible for the Homeowners’ Exemption (i.e. was the primary residence) or the Disabled Veterans’ Exemption at them time it was sold or within 2 years of the purchase or construction of replacement property.
  • Reappraisal of Original Property – The original property must be subject to reappraisal at its current fair market value as the result of its transfer.
  • Principal Resident of Replacement Property – The replacement property must be the claimants’ principal residence and must be eligible for Homeowners’ Exemption or the Disabled Veterans’ Exemption.
  • Value – The replacement dwelling must be of equal or lesser value than the original property.
  • Time – the replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.
  • Filing Claim – A claim for retroactive relief in must be filed within three years of the purchase date of the replacement property or the new construction completion date of the replacement property.

**Ask me if you’d like a list of real estate CPA specialist and financial advisors. Tax season is around the corner, don’t wait!

For more information about transferring base year value, please visit the California State Board of Equalization website: https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm#Description
Lynne MacFarlane Homes

Lynne Watanabe – MacFarlane, MCDM, Realtor

INTERO REAL ESTATE SERVICES | a Berkshire Hathaway affiliate

(831) 346-2743 text/call

email: lmacfarlane@intero.com


Posted on January 9, 2020 at 6:14 pm
Lynne (Watanabe) MacFarlane | Posted in Articles, Buyers, Homeowners, Sellers, Tax Relief | Tagged ,