In November 2020, California approved Proposition 19 - the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act.
Proposition 19 allows homeowners that are...
or victims of a natural disaster
To transfer their primary residence's taxable value to another home within...
the same state
2 years of a home's sale
up to 3 times over the course of the individual's life (or more for natural disasters)
with an upward adjustment for a more expensive home
The previous law (Proposition 60), only allowed...
A one-time tax basis transfer
To a property of equal or lesser value
Within the same county or between certain counties
This is a huge change, which demonstrates the importance of understanding and adapting your investment strategy to follow new regulation changes in order to take advantage of potential benefits.
When planning to buy, sell, or inherit real estate, you need to know all your options to make the most advantageous decisions. We recommend keeping up with the following...
State and federal government changes
Your state's legislation
Federal tax codes
Check out Forbes' article for more information on using legislation like Proposition 19 to boost your real estate investments.
Feel free to reach out if you'd like to discuss potential regulation benefits for your investment strategy. We're happy to help!
All the best,
Jennifer Anderson. "Using Legislation Like Proposition 19 To Boost Real Estate Investments". Forbes, 20 Jan. 2021, website URL. Accessed 12 Apr. 2021.