Upcoming impact of the California Proposition 19

Upcoming impact of the California Proposition 19

A new California constitutional amendment, California Proposition 19, replaces the exemption for transfers between parents and children (and grandparents and grandchildren) with a far more limited exemption. It was approved by voters and will add Section 2.1 to Article XIIIA of the California constitution.

For transfers of property between parents and children, or grandparents and grandchildren, occurring on or after February 16, 2021, the exemption will apply only to principal residences that will be used as the principal residence of the transferee and the amount qualifying for the exemption will be limited to the residence’s current assessed value plus $1 million. If the fair market value of the residence exceeds this value then the property will be partially reassessed for the difference.

Individuals who were planning to use the current parent/child, or grandparent/grandchild exclusion should speak to their advisors to determine whether this law will affect their planning.

Source: Assembly Constitutional Amendment No. 11, November 3, 2020, https://voterguide.sos.ca.gov/propositions/19/
 

Newsletter Subscribe Sign Up

Tiles Resources For You Homepage

Resources for you

Insights

Latest financial insights & resources

CIBC Private Wealth experts provide ongoing analysis and insights on what investors should consider for their portfolios and wealth plans during these uncertain times.

Read more

ECONOMY AND MARKETS

2021 midyear outlook

The COVID-19 recovery has now progressed to an outright economic expansion, and higher inflation readings are likely to persist into 2022. Our investment experts explain these and other timely economic themes impacting investors.

Watch the video

Investment insights

Renewable natural gas evolution

Electric vehicles, solar panels, wind farms, and hydrogen and carbon sequestration are all hot topics for discussion when thinking about clean energy. What about landfill gas?

Read more

CTA Primary Start the relationship

Start the relationship

Connect with an advisor