Get Reassessment Exclusion On Prop 58 & 193 - E-agents

The assessment of property taxes is an important consideration in any transfer of California real estate. An outright sale of property to an unrelated third party will usually trigger a reassessment at a higher tax rate. But some other transfers may be exempt from reassessment if structured correctly.

Proposition 58, effective November 6, 1986, is a constitutional amendment approved by the voters of California which excludes from reassessment transfers of real property between parents and children. Proposition 58 is codified by section 63.1 of the Revenue and Taxation Code.

The parent-child tax break amended Proposition 13, the landmark law passed by voters in 1978. ... It's most often claimed by children who inherit property, but the parent doesn't have to be dead, and it also applies to transfers from children to parents and can be used by an unlimited number of generations.

To avoid reassessment, the two cotenants must have owned 100% of the property for one year prior to the death of one cotenant, the property must have been the principal residence for both for one year prior to death, and the survivor must keep 100%.

Parent & Child and/or Grandparent-Grandchild Reassessment Exclusion. The transfer of real property between parents and children or from grandparents to grandchildren may be excluded from reappraisal for property tax purposes. You must file a claim to determine eligibility.

Proposition 60 (Prop 60) allows homeowners who are 55 years of age or older to sell their primary residence and transfer the base year value of that property to a replacement residence if certain conditions are met.

Passed by voters in 1978, Proposition 13 lowered property taxes to 1% (from 2.67%) of the full value of the property. ... Yet when the transfer occurs between a parent and a child, the child can inherit the low Proposition 13 tax basis.

Unless a change of ownership occurs, the assessed value of real property increases by no more than 2% annually. ... One popular exclusion from property tax reassessment involves transfers of property from parent to child or child to parent and in certain instances property transfers from grandparent to grandchild.