Q: CA Prop 19: After parent-child transfer, if child uses home as principal res. for years, is it reassessed if he leaves?
I have a question about CA Prop 19 that I haven’t seen addressed anywhere yet, and was hoping someone from this Q&A forum might have an answer.
Prop 19 for the most part repeals Prop 58, which allowed parents to transfer a house to their children, without the house being reassessed for property tax purposes. The only exception Prop 19 allows is if the child uses the property as a principal residence within 1 year of the transfer (and the child files a Prop 19 exemption for this).
-Prop 19 passes
-Parent transfers house to adult child, who claims Prop 19 exemption upon transfer and moves in.
-Adult child lives in house (principal res) for at least 2-3+ years.
My question is:
Since the adult child has lived in the house for several years, using it as a principal residence, may he now leave the house, and perhaps rent it out, without it being reassessed for property tax purposes? Or will Prop 19 require a reassessment as soon as the adult child moves out?
Congratulation, you sound like a tax pro and seek speculation on I believe a proposed new law. That may be tough one. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).
Disclaimer: No solicitation is intended by answering general questions in this forum. This is for information purposes, not intended for, and may not be construed, as legal or tax advice. For specific advice please consult your legal counsel.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.