The SCOOP on Prop 19 and Home Owner Tax Savings
As of April 1st 2021, home owners 55 years of age and older, severely disabled or whose home was destroyed by wildfire or natural disaster may transfer their taxable value of their primary residence to a replacement primary residence…. Anywhere in the state of California… regardless of location … and regardless of the value of replacement property (with certain stipulations)… within 2 years of the sale of the original primary residence… up to 3 times ( no limit if home is destroyed by wildfire or natural disaster)
Currently, under Props 60 and 90, homeowners who are 55 or over or severely or permanently disable may transfer the taxable value of their primary residence to a replacement property… one time… within the same county… or to another county that accepts the intercounty tax basis transfer… to a replacement property of equal or lesser value… within 2 years of the sale of the original primary residence.
So the 2 main points are these… 1. Home owners may transfer their tax base anywhere in California (not just within the 10 counties that were tied to Prop 90) and… 2. Home owners may purchase a replacement property GREATER than their original primary residence… (not equal to… or lesser than) . Though, the tax base will be calculated differently on the amount above the original primary residence.
Likely, since this just started, there will be issues until the state gets all the kinks worked out, but the GOOD NEWS is… there will be a TAX BENEFIT for those that want to take their tax basis with them anywhere in the state of California. (Please check with your tax planner or attorney for validation of this information).
Real Estate Update:
Recently we had a home for sale… single story, 3 bedroom 2 bathroom, approx. 1,100 square feet on a 6,686 sq foot lot …. with an in-ground pool… listed at $389K.
In just 2 days we had 52 showings, and 23 offers…22 of the offers were above asking price… Incredible!!!
YES!!! It is still a great sellers’ market and if you have a POOL, it’s even better.
If you know of someone thinking about selling give me a call and we’ll show them how to Maximize their homes potential and get them TOP DOLLAR!!
Take care and be safe out there.
Cell: (661) 406-1562
Office: (661) 400-0705