Prop 19 Explained | California Property Tax Transfer

Because Proposition 19 is such a valuable tool for so many people, I wanted to give you a quick refresher on the topic.
Let’s rewind just a little bit. Before Proposition 19, homeowners 55 years and older or severely/permanently disabled could apply to transfer their tax base if they met four criteria:
1. A tax base could be transferred one time.
2. The home had to be in the same county or a reciprocating county.
3. The replacement property had to be of equal or lesser value.
4. The replacement property purchase had to be completed within two years of selling the original primary residence.
With the implementation of Proposition 19, homeowners have more flexibility to take their original tax base to a new home. An eligible homeowner must be 55 years and older, severely/permanently disabled, or a victim of wildfire or natural disaster.
Here are the new guidelines:
1. The replacement property can be located anywhere in California.
2. The tax base can be transferred to the replacement property regardless of value.
3. The replacement property purchase has to be completed within two years of selling the original primary residence.
4. A tax base transfer can be done up to three times.
Here are a few things you need to know if you plan on transferring your tax base:
1. Transferring your tax base takes place after you have sold your original residence and purchased your replacement property. It is not done through escrow.
2. Transfer forms can be found online and should be filed in the county where the replacement property resides.
3. You are able to purchase a replacement property prior to selling your original residence, but it must be sold within two years of the replacement property purchase.
4. If you took advantage of a tax base transfer under Prop 60/90, you are still eligible to take advantage of Proposition 19 up to three times.
5. There is no time limit in which you need to occupy your original primary residence prior to selling and transferring your tax base.
If you have any questions about your new options under Proposition 19, please shoot me a text at [phone] so we can get a plan in place and find a home that meets your needs.
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My name is Ryan Schramm. I am a South Orange County real estate agent and broker/owner of Ryan Schramm Real Estate.
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[@suzannecarlos177]

You did not mention the harmful effects of Prop 19. That is what voters did not know. When a parent dies and a child inherits the home what are the ramifications? Many families have to sell their family home because of an increase in property tax due to Prop 19's rules. Hurts small businesses, renters, and middle-class families.

[@annegray123]

Sign the petition! REPEAL THE DEATH TAX now. With enough petitions we can get this on the 2024 ballot. Google REPEAL THE DEATH TAX to get the petition, sign and mail it back now so we can get back PROPERTY INHERITANCE WITHOUT REASSESSMENT. Prop 19 gutted Prop 58 (related to Prop 13). This initative, Repeal the Death Tax will bring back this Prop 58 provision so we can pass on property without reassessment, which was the law for decades!

[@dft1]

Great vid. Quick question, I heard names have to be identical. I have my place in a revocable living will, can I use prop 19 as is or have to transfer existing home to me, then sell? Thanks, Tom!

[@gregcaresio1993]

Is there any way to take advantage of this proposition if there is an inheritence of 8+ properties, or are they going to all have to be reassessed? Is there any work around for this? For example, putting the properties under an LLC, trust, etc...?

[@peterosullivan5611]

Ryan - great video. Thank you. If you sell for $1m and the basis is $500k, when you sell the second home can you keep the same basis at the higher value to buy the third home? So sell home #1 for $1m. I buy home #2 for $1m and sell it for $1.5m. Can I buy home #3 for $1.5m and keep my original $500k basis?

[@shelleycharlesworth5177]

My mortgage free house is in my trust. No children. If I leave it to a friend, what about the property taxes? Will my home be fully re-assessed ? I'm in San Diego.

[@lanetaglio]

Ryan,... GREAT video! I'm 56 just purchased a home at $1,270k and I'll be selling my current home at $600k which we bought in '08 for $290k. Based on Prop 19 our new tax will be based on the difference of $670k? (So essentially the same as we have now, correct?) TYSM

[@LivinginSanClemente]

Thank you! Based on the info given that is correct however definitely check with your tax attorney for a final verification!

[@LivinginSanClemente]

new tax will be what you were paying, plus the difference of new residence purchase price versus old residence sales price.

[@mikiev77]

Keep Prop 13 and vote no on Prop 19. Keep property tax based on the purchase price. Not the shell game of Prop 19. Prop 19 mostly benefits the rich trading up. Y wouldn't want to keep your current property tax if you moved into a place a lesser value. Prop 13 is better protection for homeowners. Don't undo it's protections.

[@pamelawayne4114]

what a one-sided presentation. Prop 19 brings more homes to the market due to the inability of most children to pay the reaccessed property taxes. This proposition was pushed through by the realtors- How self-serving Ryan