Learn what Prop 19 is and who it can help save thousands per year, avoiding a tax penalty when moving from their current primary residence to their replacement primary residence, in California.
Introduction: Hi there, it’s Parker McKee. In this blog post, we will delve into the details of Proposition 19, which went into full effect on April 1st, 2021, providing important housing and tax relief for eligible homeowners in California. Prop 19 offers benefits to homeowners who are 55 and older, severely disabled individuals, and those whose homes were destroyed by wildfires or natural disasters. Let’s take a closer look at how Prop 19 works and who can benefit from it.
Transferring Taxable Value: One of the key provisions of Prop 19 is that it allows qualifying homeowners to transfer the taxable value of their primary residence to a replacement primary residence anywhere within the state. This is a significant change, as it removes previous restrictions related to location and property value. Now, seniors, retirees, and homeowners aged 55 and older can move freely to areas that better suit their needs or closer to family, without incurring a tax penalty.
Relief for Homeowners with Severe Disabilities: Prop 19 also brings relief for homeowners with severe disabilities. It removes previous limitations and allows these individuals to move to a replacement home anywhere in California without facing a tax penalty. This ensures that those with severe disabilities have the flexibility to find a home that meets their specific needs without the burden of increased property taxes.
Assistance for Wildfire Victims: In addition to providing relief for older homeowners and those with disabilities, Prop 19 addresses the challenges faced by victims of wildfires and natural disasters. In the past, these individuals often faced substantial property tax increases when relocating to a new home. However, Prop 19 allows homeowners who have lost their homes to wildfires or natural disasters to transfer the property tax base of their damaged property to a replacement home anywhere in California. This provision offers much-needed support to those who have been displaced by devastating events, allowing them to find new homes without experiencing a significant tax burden.
Conclusion: Proposition 19 has ushered in important housing and tax relief measures for eligible homeowners in California. Whether you are 55 and older, have a severe disability, or have been impacted by wildfires or natural disasters, Prop 19 provides you with the opportunity to transfer your taxable value to a replacement home without facing unnecessary tax penalties. If you are interested in learning more about Prop 19 and how it can benefit you, please reach out to me today. I am here to provide further clarification and assist you in understanding the specifics of this important legislation.