A family home that is transferred between parents and children or from grandparents to grandchildren may be excluded from reassessment. A form is required and the transfer must meet certain conditions; more information and forms are provided below.
Property transfers between siblings or other family members do not qualify for this exclusion. Other property, residential or commercial do not qualify for this exclusion.
This provision applies to transfers starting Feb. 16, 2021. Please contact our office for transfers occurring before this date.
Parent-Child Transfer
A family home that is transferred from parent(s) to child(ren) may be excluded from reassessment.
The property must be the principal residence (R&T Section 218) of the parent(s) - Transferor(s)
The property must become the principal residence of the child(ren) - Transferee(s)
To qualify, you must claim the homeowners’ or disabled veterans’ exemption within one year of the transfer or purchase.
Your new taxable value is either your market value at transfer minus an exclusion of $1,000,000 OR your parent’s proposition 13 value, whichever is greater.
This million dollar exclusion allowance will be adjusted annually beginning in 2023.
Market Value of $1M or less
Market Value Over $1M
Market Value at Transfer:
800,000
1,500,000
Exclusion Amount:
-
1,000,000
1,000,000
Market Value less Exclusion:
=
N/A
500,000
Select the greater of the following two values:
Market Value less Exclusion:
N/A
500,000
Parent’s Prop 13 Value:
300,000
300,000
Child’s New Taxable Value
300,000
500,000
Grandparent-Grandchild Transfer
Same as Parent-Child, except in order to qualify the parents of the grandchild must be deceased.
Family Farm
Same as Parent-Child , except for a family farm, the current interpretation is that there is no requirement that the family farm contain a home that the transferee lives in to qualify. Refer to the BOE for current information.
Use the Parent-Child or Grandparent-Grandchild form.
If you have any questions, please ask an Appraiser for assistance at (714) 834-2727.
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