How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29781
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I should have asked the previous question with more detail

This answer was rated:

I should have asked the previous question with more detail - the estate is valued at approximately 1.9 million of which 95percent is property. The estate is to be divided between my two brothers and myself. One house is valued at about 1.3 - with a loan (my brother's) of 500,000 and a mortgage of 250,000. The second house is 500,000. What we would like happen is for one brother to take the second house with 500,000 value. I would get the house with 1.3 million dollar value and i would pay the 500,000 owed by my second brother. My question is - is it still possible for both my brother and I who will be keeping the two properties, to keep the tax base under prop 13.
Thank you

Lev :

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.

Lev :

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.

Lev :

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.

Lev :

There is a three year limitation to apply for the exemption.
Each beneficiary must apply separately.


Thank you.

Lev and other Tax Specialists are ready to help you