California Home Seller’s Guide: Taxes, And Prop 19 Advantages For Seniors

Have questions about any of these for Your situation?

Looking to reduce your tax burden when you sell your home? Let’s discuss how.

01

What types of taxes and transfer costs should California home sellers be aware of?

California home sellers should consider various taxes and transfer costs when selling their property. These include City and County Transfer Taxes, Escrow Fees, and Federal and State Capital Gains Taxes.

02

Can you elaborate on City and County Transfer Taxes?

City and County Transfer Taxes are fees imposed by local governments when a property changes ownership. The rates vary by location, and sellers should check with their specific city or county for the applicable rates. These taxes are typically calculated based on the property’s sale price.

03

What are Escrow Fees, and how do they impact sellers in California?

Escrow Fees are charges associated with the escrow process, where a neutral third party holds and disburses funds during the real estate transaction. These fees cover the services provided by the escrow company and can include document preparation fees, and other administrative costs.

04

What federal and state capital gains tax considerations should California home sellers be aware of?

Home sellers may be subject to Federal and State Capital Gains Taxes on the profit from the sale of their property. The Federal Capital Gains Tax rate depends on the seller’s income, while California imposes a separate State Gains Tax. Understand the potential tax implications and consult with a tax professional as this could be an expensive surprise after the fact.

05

How does California Proposition 19 impact home sellers, and are there specific benefits for individuals over the age of 55?

California Proposition 19, passed in 2020, made changes to property tax transfer rules. For individuals over the age of 55, Proposition 19 allows them to transfer the property tax base of their current residence to a new property anywhere within California, regardless of the new property’s market value. This can result in substantial property tax savings for people looking to downsize or move. It’s essential to meet specific criteria outlined in the proposition to qualify for these benefits.

Looking to reduce your tax burden when you sell your home? Let’s discuss how.