SERVICE
Apply for tax savings on transfers between parent and child
About Proposition 19 (2020) and steps to apply for property tax benefits
What to know
Proposition 19
In November 2020, California voters passed Proposition 19, which made changes to property tax benefits for families, seniors, severely disabled persons, and victims of natural disasters. The law went into effect in February, 2021.
What to do
Eligibility
Proposition 19 allows transfers of a family home between parents and their children without triggering a change of ownership for property tax purposes. This means that the transferee (commonly the children) retains the taxable value of the transferor (commonly the parents).
- A Family Home is excluded from reassessment to market value when it is transferred between
- Parent <=> child
- Only the "Family Home" qualifies. The child (or parent) must live in the property and make it their primary residence within 1 year of the transfer or death. All other Real Property (second homes, commercial) does not qualify.
There is a limit to the value that can be excluded for a family home. The value limit is equal to the property’s taxable value at time of transfer plus $1 million. If the market value exceeds this limit, the difference is added to the taxable value. (Note: the $1 million allowance is adjusted every other year)
Your principal residence may be (1) where you are registered to vote, (2) the home address on your automobile registration, and (3) where you normally return after work.
Resources about the new law
Apply
- File for 1 of these exemptions within 1 year of the transfer date:
2. Download and complete form BOE-19-P to claim the reassessment exclusion.
3. Submit the form to our office in-person, by mail, or email.
Example
Parents transfer their home to the Child on 4/3/2021. The property's factored base year value or taxable value is $400,000. The fair market value of the home is $1,600,000.
Any amount exceeding the taxable value plus $1 million will be added to the original taxable value.
Taxable Value of $400,000 is added to the exclusion amount of $1,000,000 = the excluded amount under Prop 19, $1,400,000.
Fair market value of property $1,600,000. The difference between the fair market value and the excluded amount is $200,000.
In this example, the difference of $200,000 is added to the property's taxable value. The adjusted base year value is $600,000 (original taxable value of $400,000 + difference of $200,000) as of the date of the transfer.
Get help
Address
City Hall, Room 190
1 Dr. Carlton B. Goodlett Place
San Franciso, CA 94102
Phone
Partner agencies
What to know
Proposition 19
In November 2020, California voters passed Proposition 19, which made changes to property tax benefits for families, seniors, severely disabled persons, and victims of natural disasters. The law went into effect in February, 2021.
What to do
Eligibility
Proposition 19 allows transfers of a family home between parents and their children without triggering a change of ownership for property tax purposes. This means that the transferee (commonly the children) retains the taxable value of the transferor (commonly the parents).
- A Family Home is excluded from reassessment to market value when it is transferred between
- Parent <=> child
- Only the "Family Home" qualifies. The child (or parent) must live in the property and make it their primary residence within 1 year of the transfer or death. All other Real Property (second homes, commercial) does not qualify.
There is a limit to the value that can be excluded for a family home. The value limit is equal to the property’s taxable value at time of transfer plus $1 million. If the market value exceeds this limit, the difference is added to the taxable value. (Note: the $1 million allowance is adjusted every other year)
Your principal residence may be (1) where you are registered to vote, (2) the home address on your automobile registration, and (3) where you normally return after work.
Resources about the new law
Apply
- File for 1 of these exemptions within 1 year of the transfer date:
2. Download and complete form BOE-19-P to claim the reassessment exclusion.
3. Submit the form to our office in-person, by mail, or email.
Example
Parents transfer their home to the Child on 4/3/2021. The property's factored base year value or taxable value is $400,000. The fair market value of the home is $1,600,000.
Any amount exceeding the taxable value plus $1 million will be added to the original taxable value.
Taxable Value of $400,000 is added to the exclusion amount of $1,000,000 = the excluded amount under Prop 19, $1,400,000.
Fair market value of property $1,600,000. The difference between the fair market value and the excluded amount is $200,000.
In this example, the difference of $200,000 is added to the property's taxable value. The adjusted base year value is $600,000 (original taxable value of $400,000 + difference of $200,000) as of the date of the transfer.
Get help
Address
City Hall, Room 190
1 Dr. Carlton B. Goodlett Place
San Franciso, CA 94102