You can Keep Your Current Property Taxes When Buying Another Home

Are you 55 and older, a severely disabled individual, or a wildfire or natural disaster victim looking to purchase a replacement home? If so, we have great news for you! The Home Protections Act has expanded on Proposition 60/90, allowing even more people to qualify for tax base transfers when purchasing a replacement dwelling.

Who qualifies for Prop 19

Previously, only people 55 years and older were eligible for this program. However, the Act now includes severely disabled individuals and victims of wildfires or natural disasters who purchase or move to a replacement dwelling within two years of the sale of their original residence. If the area has been declared a natural disaster and the home has been damaged substantially, the victims can also qualify.

Is there a limit to Prop-19

But that's not all! The Act now allows owners to transfer their tax base onto their replacement home up to three times in their lifetime. Plus, all counties in California can now participate in the program.

Upgrade Your Home Without Losing Your Tax Benefits: How Proposition 19 Lets You Purchase a Replacement Home at a Higher Value in California

Even better, the Act allows the party to acquire a replacement dwelling at an increased value. You no longer have to purchase a replacement dwelling of equal or lesser value than your original home. You can now purchase a new home at a higher price, and the tax value of your original home will apply to the replacement dwelling. The value above the original home sale price on the new home will be taxed at the current assessed tax value.

Let's put this into an example. Say your original home has a tax base of $250,000, and you sell it for $1,000,000. You then purchase a replacement home for $1,500,000. Your new tax base would be the original $250,000, and the value above the original home sale price on the new home price will be taxed at the current assessed tax value.

Conclusion

Overall, the Home Protections Act provides excellent benefits for anyone 55 years and older, seniors, severely disabled individuals, and victims of wildfires or natural disasters looking to purchase a replacement dwelling. Take advantage of this program to secure a comfortable and affordable home for yourself and your loved ones.