| LIFE IN SOLERA | FEBRUARY 2022 | 9
In November, 2020, Prop. 19 was passed, and this new property tax has breaks for some – and increases for
others.
All Californians who are over 55 years of age, are severely disabled, or own a home that is substantially damaged
due to a natural disaster can take advantage of the tax portability benefits from Prop. 19. People in these
groups can, when they sell a principal residence and move into a new primary residence, now transfer
the tax basis of their principal residence to a replacement property anywhere in the State of California.
Previously, inter-county transfers were done on a limited basis. They can transfer the tax basis regardless
of value. Previously, transfers had to be only to properties of equal or lesser value. These sellers may take
advantage of this benefit up to three times. Previously, sellers could only use this transfer one time.
These tax-transfer benefits went into effect on April 1, 2021.
A replacement property may also be purchased before selling the primary residence. Under Prop.
19, the only time an intergenerational property transfer is not subject to a tax reassessment is when
a primary residence is transferred to a child or grandchild. But if a child inherits a family property
but chooses not to use that property as their primary residence, the property's tax basis will be
reassessed. If a potential home seller needs advice relating to real estate planning or other transfers,
he/she should consult with a tax advisor first.
PROPOSITION 19, SIMPLIFIED
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By Glenn and Nona Bradd,
Realtors and Residents
