Transferring Your Tax Basis

Transferring Your Tax Basis in California: What You Need to Know

If you’re a homeowner in California, you may be able to transfer your property tax basis to a new home, thanks to Proposition 19. This can result in significant tax savings, especially if you’ve owned your home for many years and have a lower assessed value.

Understanding Proposition 19

Proposition 19, which took effect in April 2021, allows eligible homeowners to transfer their property tax basis to a new home under certain conditions. This means that if you qualify, you won’t have to pay property taxes based on the current market value of your new home but instead retain the lower tax basis from your previous residence.

Who Qualifies?

To transfer your tax basis, you must meet one of the following criteria:

• Be 55 years or older
• Be severely disabled
• Be a victim of a natural disaster or wildfire

Key Benefits of Proposition 19

• Transfer to Any County in California: Unlike previous laws that limited transfers to select counties, Proposition 19 allows transfers anywhere in the state.
• Up to Three Transfers: Homeowners 55+ or disabled can transfer their tax basis up to three times in their lifetime.
• Move to a More Expensive Home: If your new home costs more than your original one, you can still transfer your tax basis, but the difference in value will be added to your new assessment.

How to Apply

1. Purchase or identify your new home within two years of selling your previous home.
2. Complete the required forms with your county assessor’s office.
3. Submit documentation proving your eligibility (e.g., age verification, disability status, or proof of loss due to a disaster).
4. Await confirmation from the county assessor regarding your adjusted tax basis.

Maximizing Your Savings

For those looking to downsize or relocate within California, Proposition 19 provides an excellent opportunity to maintain lower property taxes while moving into a new home that better suits your needs.

If you’re considering a move and want to explore how transferring your tax basis can benefit you, reach out to our team at the DiMaggio Betta Group. We’re here to help guide you through every step of the process!

Here are a few helpful links: