Legal Question in Real Estate Law in California
My daughter & my wife & I bought a home (B) in California together in January. My daughter is 40 & my wife & I are 65. My wife & I own another California home (A) by ourselves which we bought in 1972. The county allows a one time tax base transfer. When we sell our California proposition 13 house (A), can we transfer our prop. 13 tax base to the new house (B) even though my wife & I only own 67% of the new house (B)?
2 Answers from Attorneys
Unfortunately no. You must own 100% of a new home to be purchased in the future for the transfer of your proposition 13 tax base.
Proposition 13 established an "acquisition value" system rather than a "current value" system for assessment of property tax. Under proposition 13, real property is assessed If the property is purchased, newly constructed or changes ownership, the property is revalued at current market value for property tax purposes. There are certain transactions that are exceptions to the change of ownership transaction that triggers reassessment.
Since proposition 13 has to do with the property tax system, it is specific to that parcel of property. It is not transferable to a new property, and has nothing to do with bases, or capital gains tax.
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