Legal Question in Real Estate Law in California

Re: Change investment property to primary residence

I do not think you have to do anything except tell the assessor that you want the tax exemption for your primary residence switched. I would call them first to see if it is too late to make the switch now; see whether you loss any part of the tax benefit. Also will they re=assess either property? You might try calling the IRS to see if they can tell you whether there is any effect. Remember that if you decide to sell one of the properties you can protect the first $250,000 in profits [$500,000 if married] if it was your principal residence during two of the last five years. Consider if there is any advantage in doing a Starker Section 1031 exchange if you want to sell your former home and if you own the investment property with someone else [I do not know if the IRS wold allow this for a place you already own a portion of].