Read this and spread the word! :)

Many ads in the mail are saying your child is okay if they live in it. In most cases in California, that is not true. Read the fine print. Then you might get angry. 

https://www.boe.ca.gov/proptaxes/pdf/lta21008.pdf

30. Question: I moved back into the house I grew up in to live with my aging mother who needs
care. She wants to give the house to me on my next birthday, which is May 1, 2021. The
current taxable value of the house on which my mother pays property tax is $200,000.
When she transfers the house to me, will the taxable value on which I have to pay property
tax change?
Answer: It depends. If the fair market value of the house on May 1, 2021, is less than or equal to
$1,200,000 ($200,000 taxable value + $1,000,000), your taxable value will not change. If the fair
market value of the house on that date is an amount greater than $1,200,000, your new taxable
value will be $200,000 plus that excess amount above $1,200,000. For example, if the fair market
value of the house on May 1, 2021, is $1,500,000, your new taxable value will be $500,000
($200,000 taxable value + $300,000 excess amount).

31. Question: Why is the extra $300,000 added to the taxable value in the previous example? I
thought my property taxes would not increase at all.
Answer: Proposition 19 states explicitly that the new taxable value will not change only if the old
taxable value plus $1,000,000 is less than the fair market value of the family home on the date of
transfer. Since the fair market value of your house was $1,500,000, which is $300,000 more than
the old taxable value of the home ($200,000) plus $1,000,000 ($1,200,000), $300,000 must be
added to the old taxable value. This is one significant change made by Proposition 19.
Intergenerational Transfer Exclusion Questions and Answers
Page 7

32. Question: Why $1,000,000? This number is so random. California housing is expensive and
$1,000,000 doesn't go very far.
Answer: We are uncertain as to why legislators chose $1,000,000. However, the $1,000,000
amount is stated explicitly in Proposition 19, so we must follow that law.