Prop 19's Radical New Tax Consequences

Thanks to Proposition 13, real property passed intergenerationally upon the death of the owner, was transferred with its tax base in place. This made holding real property one of the greatest tax advantages your estate could implement for the last forty years.

That’s history as California Prop 19 came into effect this year. Nearly all property will be reassessed at its current fair market value upon a death of the owner. Now ONLY principal residences will be exempt from a new tax valuation, and only the first million dollars will be exempt, and only if the children live in it. If the home is worth more than $1M, the value over one million will be subject to the new tax.

So that happened... but so did an expanded ability to transfer the tax base of a residence for people affected by wildfire, disability or who are over 55 years old. If you need help understanding this new law, give me a call. I'm happy to chat.

Paige