Prop 19 for Seniors, Differently Abled, and Wildfire Victims

With prop 19 you can sell your current home and buy a newer home with a better fit for your family, without raising your yearly property taxes.

Call 310-991-3946 to speak to an agent who can help you navigate this new proposition and save money when you move.

How Does Prop 19 Help Homeowners?

Proposition 19 allows qualified homeowners to transfer their current tax base to a new property when they sell. That means if you've owned your home for a long period of time, it's much more affordable to move again.

For example: Martha purchased her home for $300K 20 years ago. She wants to move closer to her daughter, so she's looking to sell her home and move to another city. Her home is now worth $1,000,000, but her taxes are appraised at $400K. She could easily sell this home and find a comparable home for the same price, but that means her yearly taxes would go up from $400K to $1,000,000! She can't afford that gap. Luckily, she is 55 or older, so she can use prop 19 to transfer her current tax base (of $400K) to a new purchase up to the market value of her current home ($1,000,000). That means she can buy a $1,000,000 home and would only be charged property taxes as if the home was $400K!

Want to know if you qualify, or how much you could save? Call 310-991-3946 now to speak to an agent free of charge!

Who Qualifies for Prop 19

The following groups qualify for prop 19 tax savings:

• Anyone 55 years or older

• Those who lost their home or had to sell due to wildfires.

• Anyone with a severe disability

Prop 19 can be used up 3 times in your lifetime. Those who previously used prop 60 or 90 to transfer their tax base can still use prop 19 again.

Where Can I Buy or Sell a Home with Prop 19?

A homeowner can sell their home in ANY COUNTY in California and purchase a comparable home anywhere in the state so long as they qualify.

What Kind of Home Qualifies for Prop 19?

Prop 19 is a lot more comprehensive than it's predecessors, prop 60 and 90. Under those older versions of the law, you were limited to buying a home of equal or lesser value than your current property. Under the new law, a homeowner can purchase a home of equal, lesser, or greater value than their current property and still transfer the tax base.

In the case of a purchase that is less than or equal to your current home's value, your tax base would simply apply to the new purchase.

In case you're buying a home that is more expensive than your current home, you transfer the current tax base up to the sale price of your old home and then apply the remainder.

Example:

Marko and Lucia found out their daughter is expecting her first child with her husband. Ecstatic, they offer to move in together so they can help take care of their grandchild while their daughter continues to go to work. Unfortunately, their home is too small to accommodate all 5 family members. They come up with a solution: They will sell their current home and purchase a larger home that will fit their growing family. Their current 2-bed home can sell for up to $1,000,000 but has a tax assessment of only $500,000.

A decent 3-bedroom in their town starts at $1,250,000.

Because their old home sold for $1,000,000, the first $1,000,000 of their new home will be tax assessed at their old rate of $400K.

But their new home is $250K more expensive than their old home, so that extra amount gets tacked on to their new tax assessment. $250K + $400K means their new home will have a tax assessment of $650K.

So even though they purchase a new home at $1,250,000 it's taxed as if it was only $650K because they transferred a huge portion of their old tax assessment.

Let's find out how much you would qualify for under Prop 19. Call 310-991-3946 to speak with an agent now!