On Feb. 16, 2021, Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, became operative.
A homeowner over 55 years of age, severely disabled or whose home has been substantially damaged by wildfire or natural disaster may transfer the taxable value of their primary residence. Prop 19 makes three significant changes to the portability of one’s tax basis from the sale of a principal residence to a replacement principal residence.
First, it allows a seller of a principal residence to transfer the tax basis of that principal residence to the purchase of a replacement principal residence anywhere in California.
Second, it allows the transfer of the tax basis of the sold principal residence to the replacement principal residence regardless of value with certain adjustments to the tax basis if the replacement principal property is of “greater value” than the sold principal residence.
And third, Prop. 19 permits such transfers up to three times (but unlimited for those whose homes were destroyed or substantially damaged by fire).
For more information, visit the State Board of Equalization website www.BOE.CA.GOV/Prop19 or call the BOE Tax Department at 916-274-3350. If you’re in San Diego County, the Assessor/Recorder office.
Jensen is a Realtor, DRE# 02066604, with Fathom Realty Group, Inc. and treasurer of the Ramona Real Estate Association
