How does Proposition 19 change the rules on tax basis portability?
Prop 19 allows a homeowner who is 55 years of age or older, severely disabled or whose home has been substantially damaged by wildfire or natural disaster to transfer the taxable value of their primary residence to: a) a replacement primary residence anywhere in the state, b) regardless of the value of the replacement primary residence (but with adjustments if replacement has a greater value), c) within two years of the sale and d) up to three times (or as often as needed for those whose houses were destroyed by fire).
The prior rule limited this exemption to a one-time transfer within the same county (Prop 60) or between certain counties (Prop 90) and only if the replacement property was of "equal or lesser value."

When does the tax basis portability portion of Prop 19 take effect?
April 1, 2021  Can my client buy/sell now and take advantage of the tax portability benefits before April 1, 2021?  There is no definitive answer in the law. Although, we believe that the tax benefits under Prop 19 will apply to transactions where either the sale or purchase of a primary residence takes place before April 1, 2021, as long as the subsequent sale or purchase takes place within two years and occurs on or after April 1. If you have a client who wishes to obtain the tax benefits of Prop 19 for a transaction that closes prior to April 1, 2021, whether it is buying or selling a property, the client should be encouraged to seek the advice of a qualified California real estate attorney or tax advisor.

If the replacement property is of equal or lesser value, does the tax basis of the replacement property
No. The taxable value of the original property may be transferred and become the taxable value of the new

If the replacement property is of greater value, how is the new taxable value calculated?
The new taxable value is calculated by adding the difference between the full cash value of the replacement
property and the original property to the original taxable value. For example, if a seller of an original property
has a $300,000 taxable value and a full cash value of $1M and then buys a replacement property for $1.5M,
the taxable value of the replacement property would be $800,000.

Can a replacement property be purchased prior to the original primary residence being sold?
Yes. This is how the current rule under Prop 60 works, and Prop19 uses nearly identical language.
How does Prop 19 affect the rules on intergenerational transfers to children or grandchildren?
It limits the exemption to those properties where the primary residence continues to be used as a family
home by the child or grandchild transferee. If so, the taxable value will remain the same, subject to some
upward adjustments if the property value, at the time of transfer, is more than $1M over the original tax basis.

If the property is more than $1M over the original tax basis, what is the new taxable basis?
The new taxable basis will be the assessed value of the property at time of transfer minus $1M.

When do these new rules on intergenerational transfers apply?
February 16, 2021.

Where may a claim to transfer a tax basis be made?
Claims may be made with forms provided by the local county assessor’s office.

Copyright©, 2020 California Association of REALTORS®. November 23, 2020 (revised).
​The above is not considered to be legal advice only an attorney or CPA may provide legal advice.

Free Home evaluations  By Scott Harrison are different than other evaluations.  I have the on line tools and the resource of 30 years first hand experience not to mention the top real-estate franchise with all their resources to draw from. It is also my job to include the correct paperwork to not only be compliant with the law and mitigate as much for my client possible liability by including extra paperwork designed to disclose, explain forms and guide to get them filled out accurately. 

I have experience with the following; Family Trust Sales, Trustee Sales, Probate sales, independent administration, court confirmed sales, Single Family Sales, Duplexes, Triplexes, Fourplexes, Land sales, Mixed use Land sales, Contract of Sale, Seller Cary the loan sales, 1031 tax differed exchanges, non recourse loans, FHA loans, VA Loans, Adjustable Loans, Fixed Rate Loans, Town Homes Sales and Purchases, Condominium Purchase and Sales, Senior Mobile homes, Modular and Mobile homes in Family parks. Commercial sales. Conservatorship sales, Bank owned sales, Short Sales, Bankruptcy sales, Divorce Sales, Pre Foreclosure sales. Sales in every city in Alameda county except Sunol and Emeryville. 

Who is Scott Harrison? 
Review his real estate biography  
Working with Scott see more about what to expect.

Scott G. Harrison

Coldwell Banker Residential 
Licensed Realtor BRE #00966212
Professional Real Estate Agent 

Phone or Text me at 510-388-4536                  
Coldwell Banker East Bay Web site 
Scott Harrison Profile on Linkedin                                 
Google Business Page

Site index

Coldwell Banker of Castro Valley Ca.
Marketing San Leandro, San Lorenzo, Hayward, Castro Valley, Oakland Real estate
Scott G Harrison 
Real Estate Agent  Alameda County
Phone 510-388-4536
BRE #00966212
Web site built by Scott Harrison below text 
Copyright©, 2020 California Association of REALTORS®. November 23, 2020