School me on prop 13 laws

[SoCalDave]

Daughter/SIL sold their condo in March of last year and we are selling them our current house for what we owe (about $250k, market value is about $725k). Can they claim prop 13 on property taxes for what they were paying at the condo?
I know when I bought this house 7 years ago I was able to do so from my previous home purchase.

Thanks in advance.

 

[shintoooo]

They have to be at least 55

 

[LuauLounge]

But, your house is not reassessed to the new rate when you sell it to them.

 

[Taboma]

But, your house is not reassessed to the new rate when you sell it to them.

Due to the relationship ? So essentially, you can sell your house to your kids (As an example) for any amount of $$ and it won't be reassessed to property taxes or or considered a gift by the IRS ?

 

[FreeBird236]

Daughter/SIL sold their condo in March of last year and we are selling them our current house for what we owe (about $250k, market value is about $725k). Can they claim prop 13 on property taxes for what they were paying at the condo?
I know when I bought this house 7 years ago I was able to do so from my previous home purchase.

Thanks in advance.

I don't know about the first part of your question, but like has been said they won't be reassessed, but there is a lot of paper work to make it work.

 

[TimeBandit]

These people seem to know:

Maintaining Your Prop. 13 Tax Base - KRASA LAW, Inc.

 

[Sherpa]

if you're selling your house for 250k, then they'll pay taxes on 250k

 

[RodnJen]

Look at transfer from parent to a child. Not sure if it still applies but worth a try.

Transferring Real Property: How to Avoid an Unexpected Tax Hike in California

Before you sell that California property or transfer part of the ownership to a family member, trust or co-owner, be aware of what you can do...

aspiriant.com

 

[74 spectra20 v-drive]

Prop 13 is about property tax not sales tax, new laws for 2021 are going after prop13 but there issue with legalities, attorneys are pulling their hair out right now as there are some big tax issues with how things can and are set up in estates.

 

[Gonefishin5555]

It sounds like a prop 58 transfer so they can keep your tax base