Q: Sell/buy CA homes as joint tenant with sibling, both seniors, only he lives in new one; how is the property tax figured?
This is considering the "claim for transfer of base year value to replacement primary residence for persons at least age 55 years." Can we have the property tax paid only in his name, keeping his old prop. tax amount? Or do I have to pay property tax on my full share of the property because I won't be living there?
A: You need to update the status of the ownership with the tax assessor. For that, consult with a tax attorney to see what types of tax protection you have.
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A:
In California, if you and your senior sibling buy a home together as joint tenants and only your sibling lives in the new home, the property tax treatment will depend on several factors. Here's what you should know:
1. Proposition 60 and 90: If your sibling is over 55 and meets certain requirements, they may be eligible to transfer the base year value of their original primary residence to the new replacement primary residence under Proposition 60 or Proposition 90 (for inter-county transfers).
2. Eligibility: To qualify for the base year value transfer, your sibling must be at least 55 years old, the new home must be their primary residence, and the market value of the new home must be equal to or less than the market value of the original property.
3. Joint ownership: If the new home is purchased jointly with you, and you do not live there, your sibling may still be able to claim the full base year value transfer for the entire property, but only if you also meet the age and other requirements.
4. Partial transfer: If you do not meet the age requirement or do not intend to live in the new home, the property tax benefit may be applied only to your sibling's proportional share of the new property.
5. Separate property tax payments: In the case of a partial transfer, the property tax will be assessed separately for each owner's share of the property. Your sibling's share will be based on the transferred base year value, while your share will be assessed at the current market value.
To ensure that you understand your specific situation and the property tax implications, it's best to consult with the local county assessor's office or a knowledgeable real estate attorney in California. They can provide more detailed guidance based on your circumstances and help you navigate the process of claiming the base year value transfer.
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