The Opportunity Is Here Now
Have you been thinking about selling your current home and purchasing a different one, but are worried about property tax increases?
Then we have great news to share with you! California has implemented new tax benefits you could be qualified to take advantage of that will allow you to move without big tax increases.
Proposition 19 / Prop 19 fully went into effect on April 1, 2021, protecting millions of older homeowners, homeowners with severe disabilities, and victims of wildfire or natural disaster.
With the passage of Proposition 19, homeowners who are 55+, severely disabled or victims of wildfire or natural disaster may transfer their current property tax base of their existing home to a new home anywhere in California. This is a significant improvement from the previous law ( Prop 60/90) that was confusing, unfair and limiting.
As older homeowners move to senior housing, retirement communities, or condos, or downsize to smaller homes, more homeownership opportunities will open up in communities throughout the state each year for renters, young families, and first-time homebuyers.
Prop 19 / Proposition 19 new tax benefits for homeowners 55+, severely disabled, or victims of wildfire or natural disaster, as of April 1, 2021 include:
- Moving anywhere in California: Proposition 19 / Prop 19 removes location restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home anywhere in California.
- Moving to any home regardless of price: Proposition 19 /Prop 19 removes price restrictions on property tax transfers allowing the transfer of the property tax base of an existing home to a new home regardless of price (with an adjustment upward to their tax basis if the replacement property is of greater value).
- Transferring the low property tax base of your original home to a new home up to THREE times (or more for victims of wildfire or natural hazard).
This could result in substantial savings in annual property taxes!
These new tax benefits went into effect April 1, 2021.
For transactions involving either the sale or purchase of a primary residence that close before April 1, 2021, please consult with your qualified estate planning or real estate attorney.
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The information contained herein is intended to provide general information and is not intended as substitute for individual legal advice. Specific examples used are only general examples, and the actual amount of property taxes owed for any person will depend on the specific situation of the
individual and a wide variety of other factors. Therefore, all persons are directed to seek the advice of an attorney regarding their specific tax and legal situation