Educational Comparison · California Prop 19 Scenarios
California Prop 19
Scenario Comparison
A qualitative comparison of what happens in four common scenarios for an inherited California home. Educational only.
Important: Read Before Using
This tool provides qualitative educational comparisons only. It does not compute specific property tax amounts, capital gains tax, or other dollar figures. Actual Prop 19 outcomes depend on your specific assessed value, current CPI-adjusted cap, county assessor determinations, individual tax situations, and factors that change year to year. This is not tax, legal, or financial advice. Consult a qualified California attorney and tax advisor for analysis of your specific situation before making decisions.
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Get proper Prop 19 analysis for your specific situation
This tool provides general framing only. Actual Prop 19 outcomes depend on details this comparison cannot capture: current exclusion cap, your parent's assessed value, county assessor practices, structuring options for buyouts, and interactions with other tax considerations. Wolf Allies can introduce you to an experienced California estate attorney at CunninghamLegal.
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How to Read This Comparison
This tool compares four common scenarios for an inherited California home under Proposition 19:
- Move In. An heir who is the decedent's child makes the property their primary residence within 12 months.
- Rent Out. The property is retained by heirs and rented to tenants.
- Sell. The property is sold and proceeds distributed among heirs.
- Sibling Buyout. One heir buys out the others and (typically) occupies the property.
Each scenario is scored with a green, amber, or red signal for the property tax outcome, capital gains tax outcome, cash flow, and complexity. These are qualitative signals only. Specific dollar amounts depend on your particular circumstances and cannot be computed generally.
What This Tool Cannot Do
This tool cannot tell you the exact property tax you will pay, the specific capital gains tax on a sale, or the precise financial outcome of a buyout. Those numbers depend on current CPI-adjusted caps that adjust biennially, federal and California tax brackets, your other income, specific structuring, and county assessor practices. For real numbers, you need direct professional advice.
Prop 19 Key Rules
For context, Proposition 19 (effective February 16, 2021) changed how inherited California property is taxed for property tax purposes:
- Primary residence only. The parent-child exclusion applies only when the property was the decedent's principal residence.
- Occupancy requirement. At least one child recipient must make the home their own principal residence within 12 months of the transfer.
- Value exclusion cap. If fair market value at transfer exceeds the parent's assessed value plus a CPI-adjusted cap (approximately $1 million and adjusted biennially), the excess is added to the child's new assessed value.
- Investment properties. Rental, second homes, and vacation properties get no parent-child exclusion under Prop 19. They are reassessed to current market value on transfer.
- Required filings. Forms BOE-19-P and BOE-19-B must be filed with the county assessor to claim the exclusion.
Wolf Allies is a California real estate referral platform, not a law firm. This tool provides qualitative educational framing for planning discussions, not legal, tax, or financial advice.