Real estate that is transferred between parents and children or from grandparents to grandchildren may be excluded from reassessment. A claim form is required and the transfer must meet certain conditions. More information and claim forms are provided below.
Property transfers between siblings or other family members do not qualify for this exclusion.
Parent-Child Transfers (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 Prop.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 (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.
If you have any questions or need a form, please call (714) 834-2727.
