Proposition 58

About Prop 58 (Parent-child transfers)

The parent-child transfers of Proposition 58 include all types of transfers of title from parents to children or from children to parents. Transfers must occur on or after November 6, 1986, the effective date of the Proposition. They may be in the form of a deed (recorded on or after November 6, 1986) or a court order dated on or after that date.

Prop 58 Conditions

Further, Proposition 58 includes all types of real property owned by the transferor, including all the value of his/her principal place of residence and on the first one million dollars ($1 million) of the enrolled value of all other types of property. A mother and father can combine their exclusion for a limit of $2 million dollars.

1997 Amendment To Filing Requirements for Prop 58

Effective January 1, 1998, in general, except where the property has already transferred to a third party, a Proposition 58 application will be allowed at any time the claim is filed after the conclusion of the above filing periods. (An exception to this rule is when a Proposition 58 application filing results in an escape or supplemental assessment and a third-party transfer has occurred.)

However, under these provisions, the first year of relief begins the year in which the claim is filed; there is no retroactively for previous years. Therefore, the first year's enrolled value would be the base year value as of the year of transfer, factored for inflation plus any additional value which has been enrolled because of subsequent transfers or new construction.

Related Propositions

All information posted is deemed accurate, but can not be guaranteed. Please consult your local tax assessors office to verify current status and provisions of this proposition before selling your home.