CA Proposition 19 - Pros and Cons

by John Campos

Proposition 19 Pros and Cons

Proposition 19 has for better or worse changed the way Real Estate in CA is taxed for a select group of individuals while alive, and for anyone that holds real estate in the state when they pass. Watch the video for full details but here is the spark notes version. If you were forced to move due to a natural disaster or if you're 55+ then you are able to transfer your tax basis from your current home to your new home. Meaning your new home will be taxed based on your previous homes tax basis saving you thousands a year on your annual taxes.

There is an additional provision that requires when anyone passes away in California that all of their properties be reassessed.

There is an exemption for a primary home, IF the descendants move into the home within a year after the passing and this exemption is limited to the first $1 Million of assessed value only. There is no such exemption for rental properties; although, Corporations, who are legal living entities, appear to avoid this particular tax.

Keep in mind that putting your property into a Trust and creating entities is critical to protecting your family from state probate fees, lawyers fees, and of course property taxes.

Please reach out if you have any questions, I'd love to help.

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