Asset Planning, Inc Blog

The latest from the team.
Font size: +
1 minute reading time (299 words)

Proposition 19 Passed in California

If you or a family member have an inherited property in California or expect one in the future, you would benefit from the information found in California’s newly passed Proposition 19, “The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act”.

Previous laws such as Proposition 13 allowed homeowners who were disabled or over the age of 55 to transfer their property tax basis one time to a new home under the condition of their replacement residence being valued equal or less than the original home. Furthermore, children could inherit their parents and grandparents properties and keep the same tax basis. However, with Proposition 19 the child must use the home as a primary residence to keep the same property tax basis. The added benefit of the new law is seniors, disabled, and those affected by wildfire and other natural disasters can transfer property tax basis to a home even if it is more expensive than their current residence. As well, property tax transfer may be done up to three times. It is important to note that if you buy a more expensive property, the transfer is prorated, meaning there will be a calculation to adjust the basis .

These rules will not affect transfers of property occurring before February 15, 2021. If you or someone you know is planning on passing a property, it is recommended you consult your tax professional soon. Note that when you pass the property, you also pass the unrealized gain in the property since it is considered a gift as opposed to inherited properties where the realized gain is removed since the cost basis is updated at death. The lifetime gift limit is above $11 million, so it may not be as large of an issue for most.

×
Stay Informed

When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.

Capital Gains 2021
API Featured in a NerdWallet Article

Search Blogs Module

Wait a minute, while we are rendering the calendar
email notifications stock pile home mortgages clients February 14 spring cleaning Medicare credit cards people medications years portal Puerto Rico privacy notices June 29 prescription eyeglasses opt-out insurance policy CERTIFIED FINANCIAL PLANNER exam California Lions Friends partner /owner Auto insurance cell phone provider app Healthcare Part D premiums . drive /usb donation items DNA test kits July 4 credit card fraud illiegal robocallers Wells Fargo employees debt coronavirus Charles Schwab relief efforts Social Security emergency kit interest rates cell phone SIM swap scam “ skimmer ”. credit score Medicare question offering insurance operations manager phone phishing scams insurance policies credit card company Medicare Advantage blog post birth certificates October 1 2020. information client portal CFP ® April 18 2017. check lists January 10 IRS deadline Affordable Care Act Kraig Mathias life saver jury duty asset Planning 2018 IRA contributions Medicare plan president Trump settlement options pets increase cell phone carriers Joey Gonzales VOIP landline phones FEMA website gap insurance Orange County house sitter tax filing deadlines 401K breach borrowing money fun atmosphere retirement planning non-prescripstion sunglasses clients show support trustee chip-enabled EMV cards spam phone parking spots ice cream event 23 andme memorial Day weekend policy retirement vacation April 11 items 2017 TD Ameritrade National LINC Conference banking September 9 paper records July 6 fees Expired medications wells Fargo Economic Security Mobile Banking Security Tips TD Ameritrade tax deadlines padlock flash drive Two-Step Verification payments pet donation drive self-help topics Supplemental Security Income family members phishing sites web address disaster areas Notary Public EEChecklist-Kits.pdf stockpilingchecklist.pdf Medicare Part B FSA identity theft credit monitoring service Open House Wells Fargo customers https ://seekingalpha ice cream COVID -19 virus clone counterfeits July 3 rd checklists September 8 Fox News story records business hours Roth IRA 900 number home break-ins Retirement Contribution Limits emergency folder earnings fallout documents spread information Facebook National Ice Cream month trust driver license pet 20 year anniversary retirement accounts vision screening earthquake app Kiplinger Letter Flexible Spending Account summer home emergency kit Ice Cream Social CA FTB stimulus package Facebook profile integral member April 15 ID card cell phone service provider home toilet paper water … investment statements consumer spending company identity thieves hurricane Dorian market turmoil emergency kits Financial Planning Magazine health care costs contribution limit Federal Trade Commission website tax season Amazon cell phone carriers offer D premiums team members interest Part B fun facts card reader estate account numbers retirement plans text messages money bottom line media accounts estate planning direction tax records Open Enrollment Social Security Administration holidays approach Coronavirus Aid Medicare Part B premiums CARES Act Legal robocalls Victor Dergunov notary services cell phones 4 pm -8pm donation counts July weekend Asset Planning paperwork clutter 2017 Equifax breach 2017 IRA contributions official certification tax returns Brexit vote Labor Day Erin Nelsen home security https :// IRS home emergency preparedness kits rescue organizations September 30 2020. health care services assets privacy settings markets Treasury Department Independence Day pet industry Shred paperwork estate planning student loans tax deadline phone companies credit freeze executive order IRA accounts car loans 70 1/2. pet supplies scams news coverage Orange County Superior Court