Client Success Story

Taking Advantage of Proposition 19

Proposition 19 – The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act
A few months ago, our team helped a client sell their home in Livermore in order to buy a new home in the Sacramento area. Our clients bought their home years ago at the original purchase price of $330,000. After 6 days on the market, we successfully sold their home for $1,200,000. Shortly after, our client was able to achieve their goal of finding their next home in the Sacramento area and bought at $1,400,000.
As in this client story, they utilized Proposition 19 to transfer their property tax base and homeowners can do so up to 3 times after the age of 55. However, the caveat is that you must purchase another home at the same (or higher) sold price of your previously sold home. Here’s how it played out for our clients:
Purchase Price (Livermore Home): $330,000Sold Price (Livermore Home): $1,200,000
Purchase Price (Sacramento Home): $1,400,000Property Tax Base (Sacramento Home): $530,000
WHAT?! How did they get that property tax base of $530,000 on a $1,400,000 home?
Original Purchase Price + Difference of Price between Old Home & New Home = New Property Tax Base
($330,000 + $200,000 = $530,000) – Simple Math!
Instead of paying a new property tax base on the purchase price of $1,400,000, which would be at $15,400 yearly, their new property tax base at $530,000 will only be $5830. That’s a savings of $9,570 yearly.

Wish to discuss if Prop 19 can work for you? We would be happy to connect you with our trusted advisors.