Senior Citizens

Homeowners who are 55 or over, severely disabled, or whose homes were destroyed by wildfire  or natural disaster, may transfer the taxable value of their primary residence to a replacement  primary residence …  

• Anywhere in the state 
• Regardless of the location 
• Regardless of the value of the replacement primary residence — even if it’s greater in value  (with an upward adjustment in the tax basis if the replacement property is greater in value) 
• Within two years of the sale of the original primary residence 
• Up to three times (although there’s no limit for those whose houses were destroyed by wildfire  or natural disaster)  

Here is how it works.

Rule 1: If the replacement property is of equal or lesser value to the original primary residence, then the taxable value  of the replacement property remains the same as that of the original primary residence. 

Rule 2: If the replacement property is of greater value than the taxable value of the replacement property will be  adjusted by adding the difference in sales price (technically, the “full cash value”) to the taxable value of the original  primary residence. 

Here is a sample calculation of the tax basis for a replacement property with a greater value than the original  primary residence. 

• Original primary residence (OPR) taxable value                                                                   $400,000 
• OPR sold for                                                                                                                                          $900,000 
• Replacement primary residence (RPP) purchase                                                                 $1,000,000 
• Difference between sale price of OPR and purchase price of RPP is                            $100,000 
• Taxable value of RPP is $400,000 plus $100,000                                                                    $500,000 

Click on the "San Diego County Prop19" button below for a nice video from the San Diego County Assessors office. Scroll down to the Downloads section to get a Prop19 fact sheet. Have more questions or need help to understand what your property tax could be under different scenarios? Give me a call, or click on the "Senior Service Request" button below.

Southern California has many communities specifically reserved for you. We have compiled a list of age restricted communities and retirement homes for your convenience.

Don't stress. We are patient and respectful. We are happy to answer all of your questions and work on your timeline. Please contact us to schedule a meeting or ask a simple question.