Prop 19 might not be the most intriguing topic of the day. But, perhaps hearing how it provided freedom and opportunity to my client could be beneficial to you or someone you know.
My client lived in her home for 47 years and planned to stay forever, eventually passing the property to her children. Life changed after her husband died. She no longer wanted to be in the home alone and felt the need to be close to her children. But she felt she couldn’t sell because she had super low real estate taxes and she wanted to move to a county that would not honor that low basis. But she really wanted to sell and move to Northern California.
Here’s where PROP 19 comes in. There were two key changes to the law that dramatically aided my client and provided opportunities that didn’t exist before.
Previously, if a senior wanted to keep their current tax basis, they had to sell and buy the new home in the same County or one that allowed reciprocity. In addition, the value of the new home had to be of equal or lesser value. This is no longer the case. Under Prop 19 Seniors now have:
- FREEDOM TO MOVE ANYWHERE IN CALIFORNIA
- FREEDOM TO PURCHASE A NEW HOME AT ANY PRICE
My client has settled in Northern California, close to her children, and had the freedom to purchase a new home while keeping her old tax basis. A big win!
