No. The residence need only qualify as the principal residence of the transferor.
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Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, was passed by California voters on November 3, 2020. The provisions of Proposition 19 that relate to the Grandparent-Grandchild Exclusion become operative on February 16, 2021. Please visit the State Board of Equalization’s website at https://boe.ca.gov/prop19/ for the latest information available on Proposition 19 and how it will affect the Grandparent-Grandchild Exclusion.
Yes. For example, a mother and a father could combine their individual $1 million benefits to exclude from reassessment a transfer to their children of $2 million of value in real property that is not the parents' principal residence.
A principal residence is a dwelling for which the owner/claimant has been granted, in the name of the parent or the child, either a homeowner's exemption (claimant owned and occupied as principal residence at the time of sale or within two years of the acquisition of the replacement property) or a disabled veteran's exemption (claimant a veteran with service-related disability and a California resident on January 1 of claim year). Only a reasonable portion of the land will be considered a part of the principal residence if the land exceeds the area reasonably necessary as a site for the residence.
The exclusion claim must be filed either
Let's explain these terms. The base year is the year when the property or portion thereof was purchased, newly constructed, or underwent a re-appraisable change in ownership by the current transferor. The base year value (also called 'original base year value') is the full market value of the home in that base year, typically either the purchase price or the 'Proposition 13 value.'
Proposition 13 was a 1978 Constitutional amendment to control rising property taxes. It limited the assessed value of existing real property to the1975-1976 assessed values, limited tax rates to one percent of assessed value (plus voter-approved surcharges), and limited inflation-based value increases to no more than two percent annually. Proposition 13 value is the full market value, adjusted by these limits. The factored base year value is the original base year value, adjusted by the annual inflation factor for each taxable year of the current transferor?s ownership.
Your claim must be filed with the County Assessor within three years of the date of transfer, or prior to the subsequent transfer of the property to a third party, whichever is earlier.