Intergenerational Transfers (parent/child or grandparent/grandchild) - Prop 19
Qualifying transfers of ownership in real property from parents to children, children to parents, grandparents to grandchildren, or grandchildren to grandparents may be excluded from reassessment. The property must be either a family farm, or the principal residence of the transferor. Claiming this exclusion may not always be to your benefit. You may wish to consult a real estate or income tax expert for advice.
For further information, please visit the California State Board of Equalization website.
Who can use this service?
Anyone that qualifies under these circumstances:
- This exclusion applies to transfers that occurred on or after February 16, 2021.
- The property must be either a family farm, or the principal residence of the transferor. “Real property” does not include any interest in a legal entity.
- If a family farm, the transferee must continue to use the property as a family farm.
- If a principal residence of the transferor, the property must become the principal residence of the transferee within a year of the transfer. The transferee must also file and qualify for either a homeowner’s exemption or a disabled veteran’s exemption in the same timeframe.
- Transfers of a principal residence or family farm may be eligible up to an “excluded amount.” The amount is calculated by adding $1,000,000 to the current taxable value of the family home.
- “Children” include natural, step, and in-law relationships, as defined by law. It also includes children who were legally adopted before the age of 18, and foster children of a state-licensed foster parent under certain circumstances.
- “Grandchildren” include any children of a child of the grandparent. As of the date of transfer, the parents of the grandchild or grandchildren must be deceased to qualify as the children of the grandparents, as defined above.
Is there a charge for this service?
This service is provided free of charge.
When and where is this service offered?
This service is available throughout the year during regular business hours except during scheduled holidays.