How Prop 19 Affects California Homeowners

 

Here’s what the passage of Prop 19 means for you.

 

Prior to the passage of Proposition 19, if you wanted to sell your primary residence and take your property tax basis with you, you had to stay in the same county and buy a home of equal or lesser value to the home you were selling.

 

As of April 1, though, if you want to move from Sacramento to, say, San Diego, you can take your property tax basis with you, and the home you intend on buying can be of greater value than the one you’re selling. You can sell a $500,000 home and buy a $900,000 condo on the water and take your tax basis with you. However, an adjustment is still made on the difference between the old price and new price. Additionally, you can now do it three times instead of the previous limit of once. If your home was destroyed by wildfire or natural disaster, you have an unlimited amount of time to take your tax basis with you. 

 

I’m not a CPA or an attorney, so if you’d like to take advantage of Prop 19, I recommend reaching out to one of those professionals first. If you have any questions about this topic or want to know the value of your home in today’s hot market, don’t hesitate to reach out to me. I’d love to hear from you!