Los Angeles — These two transfers of homeownership (also known as Propositions 58 & 193) provide tax relief for property transfers between parents and children, and in some cases, from grandparents to grandchildren. Collectively, they make it easier to keep property in the family.
In general, Proposition 58 states that property transfers, from parent to child or child to parent, may be exempt from reassessment. Proposition 193 expands this tax relief to include transfers from grandparents to grandchildren.
In both cases, a claim must be filed within three years of the date of transfer to receive the full benefit of the exclusion. In addition to tax relief on the main home, you may claim an exemption on transfers of other property with an assessed value of up to $1 million.
The $1 million exemption applies separately to each eligible person. A $2 million limit applies to community property of an eligible married couple.
Here is where you’ll find more specific information regarding both exclusions.
