What Are Your Taxes Under Prop. 19 …
Can You Transfer Your Current California Home’s Taxes to Your Next Home?
The question today is, can you take your current California home taxes with you to your next home. This is determined by Prop. 19. Under Prop. 19, whether or not the base year value of an original principal residence can be transferred to a replacement principal residence, without adjustment, depends on the fair market values of the two properties.
If the fair market value of the replacement principal residence does not exceed the fair market value of the original principal residence, the factored base year value of the original principal residence can be transferred to the replacement principal residence without adjustment.
However, if the fair market value of the replacement principal residence does exceed the fair market value of the original principal residence, the difference between the two market values will be added to the factored base year value of the original principal residence. The sum will be the new base year valueof the replacement principal residence.
EXAMPLE:
Homeowner, who is over age 55, sells a principal residence on June 28, 2021 for a full cash value of $700,000. At the time of sale, the single-family residence has a factored base year value of $225,738. On July 22, 2021, a replacement principal residence is purchased for a full cash value of $800,000. Since the full cash value of
the replacement principal residence exceeds the full cash value of the original principal residence, the difference in full cash values must be calculated and added to the transferred factored base year value.
To find out the market value of your property, please call me at (310) 519-7670.
For more information and updates on Prop. 19, please visit assessor.lacounty.gov/prop19
Disclaimer: Information on this document should not be construed as legal advice, but is designed merely to inform the public on tax relief opportunities processed by the Office of the Los Angeles County Assessor. If you have any questions regarding your particular property tax position, it is recommended that you consult with an attorney or a property tax professional.