Have a Tax Question? Ask a Tax Expert
Hi and welcome to our site!
Transfers by sale, gift, or inheritance can avoid reassessment under Proposition 58. If a parent transfers a property to more than one child (shared ownership), each child should apply for the exemption for his/her share. Generally, the person acquiring the property must file a claim within 3 years after the date of transfer (if gift or sale) or parent's death (if inheritance), or the property is transferred to a third party.
You will not get the exemption automatically.
Please see fro reference - http://assessor.lacounty.gov/extranet/guides/prop58.aspx
The principal place of residence must have been granted a Homeowners’ Exemption or Disabled Veterans’ Exemption before the transfer.In addition to tax relief on the principal residence, you may claim an exclusion on transfers of other real property with an assessed value of up to $1,000,000.
Transfers by sale, gift, or inheritance qualify for the exclusion.
So as i understand it, as long as we all involved parties apply for the exemption - and in this case, I end up with the house we are still able to keep the tax base, but will have to file a claim at a later date but within 3 years.
That is correct - you will be able to keep the tax basis for the principal place of residence of the decedent - no limit as long as it was granted a Homeowners’ Exemption,and another property - up to $1,000,000.
There is a three year limitation to apply for the exemption.Each beneficiary must apply separately.