Due to the rise in natural disasters, California legislation has passed Prop 19 to help a variety of homeowner be able to sell, purchase and move homes without the taxes and liability that normally occur.
In this blog we will focus on California homeowners who are 55 or over, severely disabled, or whose homes were destroyed by wildfire or natural disaster. These homeowner may transfer the taxable value of their primary residence to a replacement residence with the following rules:
- Move anywhere in the state
- Regardless of the location
- Regardless of the value of the replacement primary residence
- Within two years of the sale of the original primary residence
- Up to three times (although there's no limit for those whose houses were destroyed by wildfire or natural disaster)
These rules are in affect on and after April 1. 2021