Proposition 19 Has Officially Passed – What Does That Mean for You?

Proposition 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, The seller of a principal residence may transfer the tax basis of that principal residence to the purchase of a
replacement principal residence anywhere in the State of California. Under prior law, the seller was limited to transfers either within the same county (under Proposition 60) or between a limited number of counties that specifically permitted such taxable value transfers (under Proposition 90).
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. Under prior law, only transfers of "equal or lesser value" were eligible for the exemption.
And third, Proposition 19 permits such transfers up to three times (but unlimited for those whose homes were destroyed or substantially damaged by fire). Prior law allowed such transfers only one time. The following link includes a comprehensive comparative chart outlining the “old and the new.” Prop19
Take a look below at the CALIFORNIA ASSOCIATION OF REALTORS® Quick Guide about Prop 19 for a breakdown of the changes on tax breakdown portability, the impact on intergenerational transfers to children or grandchildren, when the law goes into effect, and more!

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Chase’s specialty is the selling and leasing of residential property, including single-family homes, condominiums and multi-unit properties. He has also been retained many times over the years by various banking institutions to sell their inventory. His attention to detail and professionalism have also made him a popular referral among business managers, attorneys and financial advisors.

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