Intergenerational

Proposition 19 International Transfers

On November 3, 2020, California voters approved  Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.

Effective date for Intergeneration Transfers, February 16, 2021.

Intergenerational Transfer Exclusions- Allows the taxable value of a property to remain the same for the person receiving the property (the transferee) as that of the person transferring the property (the transferor), provided certain conditions are met. 

Parent/Child exclusion is available on transfers for:

• Biological or adopted child
• Stepchild
• In-law child (daughter/son in-law)
• Foster child in limited cases

The exclusion is available only under the following conditions:

• The family home must have been the principal residence of the transferor (for example, parent).
• The transferee (for example, child) must live in the home as their primary residence within one year of the transfer and must continue to occupy the family home.
• The transferee (for example, child) must file for the homeowners’ or disabled veterans’ exemption on the residence within one year of the transfer. If the property was transferred to two or more children, and one moves out and another moves in, a new claim must be filed within one year of the previous child’s move-out date.
• A family farm must be under cultivation or being used for pasture or grazing, or to produce any agricultural commodity (plant and animal products produced for commercial purposes); there is no requirement that a family home be on the property.

To file a claim for Prop 19P Transfers between Parents and Children Occurring After February 15, 2021, please complete and submit the form by utilizing the link below:

https://taxpayer.justappraised.com/dashboard/form/FORM_19_P

Grandparent/Grandchild exclusions are available on transfers between grandparent and grandchildren as long as:

• The grandchild’s parents are deceased prior to the transfer, or
• The grandparents’ child is deceased, and the surviving in-law parent has remarried prior to the date of transfer.

Grandchild is defined by R&TC section 63.2(e) as a child of the child of the grandparent.  A child can be biological or an adopted child, a stepchild, an in-law child, in limited cases.

The exclusion is available under the following conditions:

• The family home must have been the principal residence of the transferor (for example, grandparent).
• The transferee (for example, grandchild) must live in the home as their primary residence within one year of the transfer and must continue to occupy the family home.
• The transferee (for example, grandchild) must file for the homeowners’ or disabled veterans’ exemption on the residence within one year of the transfer. If the property was transferred to two or more grandchildren, and one moves out and another moves in, a new claim must be filed within one year of the previous grandchild’s move-out date.
• A family farm must be under cultivation or being used for pasture or grazing, or to produce any agricultural commodity (plant and animal products produced for commercial purposes); there is no requirement that a family home be on the property.

To file a claim for Prop 19G Transfers between Grandparents and Grandchildren Occurring After February 15, 2021, please complete and submit the form by utilizing the link below:

https://taxpayer.justappraised.com/dashboard/form/FORM_19_G

The Proposition 58 exclusion is available for qualifying transfers between Parents and Children under the following transfers:

• The transfer of a principal residence (no value limit);
• The transfer of up to one million dollars in assessed value of other real property

The parent-child exclusion is available on transfers from a parent or parents to their:

• Son or daughter (born to or adopted)
• Stepchild
• Son-in-law or daughter-in-law

The Proposition 193 exclusion between Grandparents and Grandchildren is available for the following transfers:

• The transfer of a principal residence (no value limit);
• The transfer of up to one million dollars in assessed value of other real property

The one million dollar value cap on a transfer of a non-principal residence property is on the assessed value, not market value.  The one million dollar cap applies separately to each eligible transferor. For example, a mother and father can each transfer one million dollars of non-principal residence property to their child for a combined total of two million dollars.

To apply for either of these exclusions please complete and submit the following by utilizing the links below: 

Proposition 58

https://taxpayer.justappraised.com/dashboard/form/FORM_58_AH

Proposition 193

https://taxpayer.justappraised.com/dashboard/form/FORM_58_G

To qualify for relief from the date of transfer, the claim must be filed within three years; however, if filed after the three years it will only be applied prospectively from the year in which your claim form is filed, if you still own the property.

Additional information can be found by visiting the State Board of Equalization’s website at www.boe.ca.gov.