inherited trust want to buy out sister and retain low prop 13 tax basis

[Alan DeRossett]

Hi, I will inherit a multi-family property with no current mortgage and 4 Rents as income along with my Sibiling. She wants to sell to me. But want to retain my Fathers' Prop 13 low Tax basis when transferring ownership under California Prop 19 im told by the County tax accessor i can what's the best type of loan to buy my Sister out. The Property Tax would be $16k more buying identical property next door so want to retain Prop 13.. This is Ventura County but no VC option on Bigger Pockets Personal Finance forum

[Katie Balatbat]

@Alan DeRossett

What did the County Assessor tell you?  Prop 19 is pretty limiting now with allowing children to retain a parent's assessed value for real property.  Typically it requires that the parent have lived in the property as his primary residence, and it also becomes your primary residence.  Did your dad die after Feb 2021?  You may want to research key terms Prop 19 and parent-child exclusion to investigate further.

*this post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.

[Alan DeRossett]

Thanks! ok yes, Dad's primary residence is also in the trust im getting 2020 Prop 58 mixed up with Prop 19. Also, Dad's 97 and I currently take care of him at Home. Still, time to make structural changes I'm also an adult child over  55 and have lived here for over two years. The Multi-Family 4 plex is a separate investment property. I figured I needed to close the 4 plex first to afford the Home I would own 50% of each and needed to do a budget forecast.

[Janelle Eagle-Robles]

Quote from @Alan DeRossett:
Thanks! ok yes, Dad's primary residence is also in the trust im getting 2020 Prop 58 mixed up with Prop 19. Also, Dad's 97 and I currently take care of him at Home. Still, time to make structural changes I'm also an adult child over  55 and have lived here for over two years. The Multi-Family 4 plex is a separate investment property. I figured I needed to close the 4 plex first to afford the Home I would own 50% of each and needed to do a budget forecast.

Hey there! Not sure if you still need help on this, but I would suggest have conversations with a lender as well as a CPA to determine the best course of action. If you need recommendations for either, please let me know - I'm happy to help out! 

[Gina Tse-Louie]

Sibling transfers can be challenging especially with Proposition 19.  Even with $1million exemption...  even already occupying...  one may not be able to stay in home thanks to unaffordable property tax reassessment.  Help us to #FiXProp19 by #RepealTheDeathTax. Download, print, wet ink sign and submit. Signer can be Circulator (witness for self and others). Complete BOTH sections. We need 1.3 million signatures to get on November 2024 ballot. Volunteer and Download petition at ForCalifornians.com or RepealTheDeathTax.com.