55 Over Seniors, Severely Disabled,
You can transfer the “taxable value” of your primary residence(original) to a replacement residence* anywhere in the state if you’re a beneficiary.
*Replacement residence must be purchased or newly constructed
within two years of the sale of the original home.
(Effective on April 1, 2021)
PROP.19 : Comparison
01. No More Value Limit
Equal or lesser value > Any value*
To qualify, there is no limit to the market value of the replacement property compared to the original property; *but the amount above the original property’s market value is added to the transferred taxable value.
Example for Upgrade
If the market value of the replacement residence is more than the market value of the original, then the excess will be added to the taxable value transferred at market value.
Original Taxable Value = $300,000
Original Market Value = $600,000
Replacement Market Value = $700,000
> Since the market value of the replacement is $100,000 more than the original’s market value, an adjustment to the transferred taxable value is made to add the difference in value. Therefore, the taxable value of the replacement will be $400,000 ($300,000 + $100,000).
Example for Downsizing / Similar Value
If the market value of the replacement residence is less than or equal to the market value of the original, then the taxable value will transfer to the replacement residence with no adjustment needed.
Original Taxable Value = $300,000
Original Market Value = $900,000
Replacement Market Value = $700,000
> The taxable value transferred to the replacement will remain at $300,000.
PROP.19 : Comparison
02. Anywhere in California
Same county / 10 intercounty ordinance counties > Anywhere in California
There is no more area limit. It had to be a same county or 10 intercounty ordinance counties before, but you can transfer your taxable value to replacement residence anywhere in California.
PROP.19 : Comparison
03. 3 Times in Your Life
One time > Three times
The transfer was once in a lifetime. However, you can transfer your taxable value up to 3 times in your life.
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*More details on here. The information contained in this page is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
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