I have lived with parents in California for over a year. My parents want to sell me the house. I will obtain a new loan with my lender. My question has to do with the property taxes. Is this purchase transaction considered a parent to child transfer to avoid reassessment of property tax? The below tax law for California does not specify "purchase" from parents. It reads, "can transfer" their property. I'm hoping to keep my parents tax base. Thank you.
Under the new Proposition 19 (effective Feb. 16, 2021), parent(s) and grandparents(s) can transfer their property along with its Proposition 13 base year value to their children or grandchildren if the following conditions are met:
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Yes, provided that all other requirements are met, the purchase of your parents' home can qualify as a transfer for tax assessment purposes under Proposition 19.
Effective February 16, 2021, California Proposition 19 limits property tax increases on family homes used as a primary residence by allowing parents to pass on their family home to their children for continued use as a primary residence.
The Office of the Assessor, Santa Clara County, provides this explanation of the requirements, including this statement:
The requirements, as of February 16, 2021, for Proposition 19 exclusion include, but are not limited to: Purchase or transfer of a family home between parents and their children if the property continues as the family home of the transferee.
Be sure to file a valid homeowner's exemption within one year of the transfer to qualify. Contact your county assessor's office or consult their website for more information.
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