Do you know which real property sales can be excluded from reassessment for property tax purposed in California? In the State of California, Propositions 58 and 193 help keep taxes low when sales or transfers are between certain family members. So, if a property sale is between a parent and a child or a grandparent and a grandchild, they might be exempt from property tax reassessment.
For example, any time the sale for these family members’ primary residences, you might be able to avoid the reassessment with no value limit! If it’s not going to be and currently a primary residence, then the first one-million dollars of real property is allowed to be excluded from reassessment. So, say someone’s father is moving to a retirement community and passes the family home onto his son, who’s currently renting an apartment. The son intends to live in the home. The home was the father’s primary residence, and it’s about to become the son’s primary residence. This property could be excluded from reassessment if they choose, even if the home is valued at $2 million.
If you’re thinking of this kind of sale, consult a lawyer to make sure the sale or transfer goes smoothly.
Now, also consider this though. If you’re 55-years-old or older and you’re purchasing a smaller home for downsizing purposes, you might might to transfer the taxable value of your current home to your next home in order to avoid paying higher taxes! The way property taxes work, sometimes, even a smaller home is taxed more than a home you’ve lived in for decades. (Learn more about transferring your property’s taxable value.)
Thinking of Purchasing a Home in Irvine, California?
If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for you. Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.
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