Here’s how Proposition 19 benefits you as a home seller.
Proposition 19 was voted in last year and goes into effect on April 1, 2021. What benefits does it offer you if you’re thinking of selling your home?
If at least one person on title is 55 or older, displaced because of wildfires or natural disaster, or has a severe disability, you can sell and take your current property tax basis with you. You can then buy another home anywhere in California, and you can do this up to three times.
Here’s how it works: If you purchase a home of equal or lesser value to your primary residence after you sell it, you can purchase another new property within two years and take that lower tax basis with you. For example, if you sell a home for $1.2 million that you originally bought for $300,000 and then buy another home that’s less than $1.2 million, your tax basis will transfer. If you purchase a home worth more than $1.2 million, you’ll still bring your tax basis with you, but there will be an upward adjustment on the difference above the $1.2 million.
In my next video, I’ll go over the rules regarding inheriting a property under Proposition 19, so stay tuned! As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to help you.