| Parent-Child
Transfers (R&T Section 63.1) The
Basics FAQ
• Real estate that is transferred from parent(s)
to child(ren), or from child(ren) to parent(s) may be
excluded from reassessment.
• The established Prop. 13 taxable value is not
affected by the transfer
• Exclusion is not automatic; there must be a
timely filed claim with the Assessor's Office
• The new owner's taxes are calculated on the
established Prop.13 factored value, instead of the current
market value when the property is acquired.
• $1 million limit (taxable value) on transfers
of non-principal residence property
• No dollar limitation on the original owner's
principal residence
• Transfers between legal entities (i.e., corporations,
partnerships) that are owned by parents or children
do not qualify
The parent-child transfers under Proposition 58 include
all types of transfers of title from parents to children
or from children to parents. Transfers must occur on
or after November 6, 1986, the effective date of the
Proposition. They may be in the form of a deed (recorded
after November 6, 1986), an inheritance from someone
who was deceased after November 6, 1986, a court order
dated on or after that date, etc.
Further, this Proposition includes all types of real
property owned by the transferor, including all the
value of his/her principal place of residence and on
the first one million dollars ($1 million) of the enrolled
value of all other types of property. A mother and father
can combine their exclusion for a limit of $2 million
dollars.
For more information, or if you are not certain
about the information you are looking for, call the
Santa Clara County Assessor’s Office @ 408-299-5500
Contact
us for more info on Santa Clara County Proposition 58
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