SERVICE
Apply for tax savings on transfers between grandparent and grandchild
Avoid property tax increases when acquiring property from your grandparents
What to know
Proposition 19
In November 2020, California voters passed Proposition 19, which made changes to property tax benefits for families, seniors, severely disabled persons, and victims of natural disasters. The law went into effect in February 2021.
What to do
Eligibility
In California, real property is reassessed at market value if it is sold or transferred. Property taxes can sometimes increase dramatically as a result. However, if the sale or transfer is between grandparents and their grandchildren, the property will not be reassessed if certain condition are met and the proper applications are timely filed.
Proposition 19 allows transfers of a family home between grandparents and their grandchildren without causing a change of ownership for property tax purposes. To qualify, the parents of the grandchild, who qualify as children of the grandparents, must be deceased.
- A Family Home is excluded from reassessment to market value when it is transferred between
- Grandparent <=> grandchild
- Only the "Family Home" qualifies. The child (or parent) must live in the property and make it their primary residence within 1 year of the transfer or death. All other Real Property (second homes, commercial) does not qualify.
There is a limit to the value that can be excluded for a family home. The value limit is equal to the property’s taxable value at time of transfer plus $1 million. If the market value exceeds this limit, the difference is added to the taxable value. (Note: the $1 million allowance is adjusted every other year)
Definition of child and grandchild
- Child (middle generation): Children include the following: sons and daughters, sons-in-law and daughters-in-law, stepchildren, and children adopted under 18. Beginning January 1, 2006, a stepparent who is an in-law child of the grandparent does not need to be deceased in order for the grandchild to qualify.
- Grandchild: The children of the deceased child (middle generation).
Steps to apply
- File for 1 of these exemptions within 1 year of the transfer date:
- Download and complete form BOE-19-G to claim the reassessment exclusion.
- The exclusion claim must be filed within 3 years of the date of the transfer date, but before transferring the property to a third party.
- If the claim form has not been filed within 3 years of the date of transfer, it will be timely if filed within six months after the date of mailing of the notice of supplemental or escape assessment for the property.
- If a claim is not timely filed, the exclusion will be granted beginning with the calendar year in which the claim is filed.
Get help
Address
City Hall, Room 190
1 Dr. Carlton B. Goodlett Place
San Franciso, CA 94102
Phone
Partner agencies
What to know
Proposition 19
In November 2020, California voters passed Proposition 19, which made changes to property tax benefits for families, seniors, severely disabled persons, and victims of natural disasters. The law went into effect in February 2021.
What to do
Eligibility
In California, real property is reassessed at market value if it is sold or transferred. Property taxes can sometimes increase dramatically as a result. However, if the sale or transfer is between grandparents and their grandchildren, the property will not be reassessed if certain condition are met and the proper applications are timely filed.
Proposition 19 allows transfers of a family home between grandparents and their grandchildren without causing a change of ownership for property tax purposes. To qualify, the parents of the grandchild, who qualify as children of the grandparents, must be deceased.
- A Family Home is excluded from reassessment to market value when it is transferred between
- Grandparent <=> grandchild
- Only the "Family Home" qualifies. The child (or parent) must live in the property and make it their primary residence within 1 year of the transfer or death. All other Real Property (second homes, commercial) does not qualify.
There is a limit to the value that can be excluded for a family home. The value limit is equal to the property’s taxable value at time of transfer plus $1 million. If the market value exceeds this limit, the difference is added to the taxable value. (Note: the $1 million allowance is adjusted every other year)
Definition of child and grandchild
- Child (middle generation): Children include the following: sons and daughters, sons-in-law and daughters-in-law, stepchildren, and children adopted under 18. Beginning January 1, 2006, a stepparent who is an in-law child of the grandparent does not need to be deceased in order for the grandchild to qualify.
- Grandchild: The children of the deceased child (middle generation).
Steps to apply
- File for 1 of these exemptions within 1 year of the transfer date:
- Download and complete form BOE-19-G to claim the reassessment exclusion.
- The exclusion claim must be filed within 3 years of the date of the transfer date, but before transferring the property to a third party.
- If the claim form has not been filed within 3 years of the date of transfer, it will be timely if filed within six months after the date of mailing of the notice of supplemental or escape assessment for the property.
- If a claim is not timely filed, the exclusion will be granted beginning with the calendar year in which the claim is filed.
Get help
Address
City Hall, Room 190
1 Dr. Carlton B. Goodlett Place
San Franciso, CA 94102