Explore Properties at Southern California: California Property Tax Assessed Value Protections on Some Transfers

Homeowners and buyers in California should know about property tax assessed value basis protections that are possible on some transfers.

Here are two of those situations for possible protection as explained by the Orange County Assessor, Orange County, CA.

Assessed value protection

Parent-Child Transfers (California Prop. 58)

Real estate that is transferred from parent(s) to child(ren), or from child(ren) to parent(s) may be excluded from reassessment. (Revenue and Taxation Code, Section 63.1)
The established Prop. 13 taxable value is not affected by the transfer.
The new owner's taxes are calculated on the established Proposition 13 value, instead of the current market value when the property is acquired.
$1 million limit (taxable value) on transfers of non-principal residence property.
No dollar limitation on the original owner's principal residence.
Generally, transfers between legal entities (i.e., corporations, partnerships) that are owned by parents or children do not qualify.

Grandparent-Grandchild Transfers (California Prop. 193)

Real estate that is transferred from grandparent(s) to their grandchild(ren) may be excluded from reassessment. (R&T Code, Section 63.1)
Parents of the grandchild must be deceased as of the date of transfer.
The established Prop. 13 taxable value is not affected by the transfer.
Taxes are calculated on the established Prop.13 value.
One million dollar limit (taxable value) on transfers of non-principal residence property.
No dollar limitation on grandparent's principal residence unless the grandchild has previously received property excluded under a Prop. 58 (parent/child) exclusion.
Generally, transfers directly between legal entities (i.e., corporations, partnerships) that are owned by grandparents do not qualify.

Source of this information is Office of the Assessor, Orange County, CA. This is for information only and not the providing of legal or tax consultation services. For questions and information about your property tax situation at Orange County, CA, contact the Orange County Assessor or go to www.ocgov.com/assessor.

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Harrison K. Long - Business Solutions and Advisory, REALTOR® and broker associate, Coldwell Banker Residential Brokerage - Phone: 949-854-7747 - CA DRE 01410855 - www.OCPropertyNews.com - www.Irvine-homevalues.com - www.NewportCoastLive.com - www.CoastLivinghomes.com - www.OCHomeValueGuide.com - www.LiveAtIrvine.com - www.ExploreOCHomes.com - www.LiveAtOrangeCounty.com - "Helping People, Moving Forward, Developing Relationships and Protecting Property Values"