Proposition 19

This page is dedicated to bringing you resource links to important information regarding the implementation of the new 2021 law, Proposition 19.

Here is a Quick Guide Overview.

The passage of Prop 19 last November will provide housing and tax relief for seniors, wildfire victims, and the disabled. These individuals will be able to transfer the taxable value of their primary residence to the replacement of another home anywhere in the state, regardless of the value of the replacement primary residence.

The Glendale Association has gotten questions about Prop 19, and your clients are likely to have many questions as well. C.A.R.’s Legal Team has prepared an extensive FAQ to address some of those questions.

When does it take effect?

The law starts on April 1, 2021.

Can your clients take advantage of the tax portability benefits before April 1?

C.A.R.’s attorneys believe that there is no definitive answer in the law. The Prop 19 tax benefits may apply to primary residence transactions before April 1, 2021, as long as the subsequent sale or purchase takes place within two years and occurs on or after April 1.

Get more information on Prop 19 from C.A.R.: Tax Portability Legal FAQs

Prop 19 also changes the rules on exemptions for intergenerational transfers by limiting the exemption to the transfer of a primary residence to a child (or grandchild) under certain conditions.  Read more about Intergenerational Transfers under Prop 19 at C.A.R.

These new rules apply to any purchase or transfer beginning February 16, 2021.

 

These new rules apply to any purchase or transfer beginning February 16, 2021.

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