Transferring property between family can be complicated, but you should know how to do it the right way. In 2021, California enacted prop 19 which made it easier for families to transfer property without seeing an increase in taxes. In this video, Brad Rice explains what this means and why it’s useful. You can learn more about proposition 19 at www.amerifund.com/links.
How would you like to purchase a home and keep the low property tax basis that the current owner has? Well, when transferring ownership or purchasing property between family members in California, you can do this by using Proposition 19 which replace Prop 58 in February 2021.
There are some distinct differences be aware of, however the most notable is that there was a value limit of $1M previously, where now the limit is the current taxable value plus $1M.
Transfer can still be made between Grandparent, Parent, or Children.
So, if you are thinking about taking over a residence that has been in the family for many years and the property taxes are low, consider filing for Prop 19 when you record the transfer for some Big Savings.
More information is located using the link below, and other states may have similar initiatives.
As always, we are here to guide you whenever you have questions.