Expert guides on Prop 19, probate sales, income property investing, and 1031 exchanges — written for Brea, Whittier, La Habra, and Southern California homeowners, investors, and families.
Prop 19 exclusion guidance for inherited properties
Tax base transfer anywhere in California
Cap rates, cash flow analysis, and rental strategy
Court-supervised probate sale guidance
1031 exchange guidance to defer capital gains
County assessor offices, forms, and deadlines
Inherited homes are reassessed unless the heir uses the property as their primary residence, subject to a $1M exclusion cap. Seniors 55+ can transfer their property tax base to any home in California, up to 3 times. You must file with the county assessor — this is NOT automatic. Missing the deadline triggers full reassessment.
Renting the inherited property — even temporarily — immediately triggers reassessment and eliminates your exclusion eligibility.
BOE-266 (Homeowners’ Exemption, file within 30 days) + BOE-19-P or BOE-19-B (file within 1 year of transfer)
Cap Rate = NOI ÷ Purchase Price. Vacancy rate and expense ratio are critical to accurate projections. California landlord-tenant laws are tenant-protective. Depreciation is a key tax benefit for investment property owners. 1031 exchange is available on exit to defer capital gains.
Single-family rentals, duplex and multi-unit (2–4 units), 5+ unit commercial, short-term rentals (Airbnb/VRBO), and mixed-use properties.
AB 1482 rent control applies to many multi-family properties in California. Understanding which properties are covered — and which are exempt — is essential before investing.
Probate is required when property is not held in a trust or joint tenancy. The court must confirm most probate sales, which includes an overbidding process. The timeline typically runs 9–18+ months. Buyers CAN finance probate property purchases. The minimum overbid is calculated as: Accepted Offer × 110% + $500.
Month 1: File petition. Months 2–3: Executor/administrator appointed. Months 3–5: Property listed. Months 5–6: Offer accepted. Months 6–8: Court confirmation hearing. Months 8–9+: Close of escrow.
You have 45 days to identify replacement properties and 180 days to close. A qualified intermediary must hold your proceeds — you cannot touch the funds. The replacement property must be of equal or greater value. California has claw-back rules for out-of-state exchanges.
Delayed (most common), Reverse, Improvement/Construction, Simultaneous, and Personal Property exchanges.
Missing the 45-day identification deadline is fatal — there are no extensions, no exceptions. Plan your replacement properties before you list.
Trust sales bypass probate entirely — they can close in weeks, not months. The trustee must notify beneficiaries within 60 days per CA Probate Code §16061.7. A date-of-death appraisal establishes the stepped-up basis. An Affidavit of Death of Trustee must be recorded before the sale. Form BOE-502-D must be filed within 150 days.
1) Confirm trustee authority. 2) Obtain EIN for the trust. 3) Open a trust bank account. 4) Send §16061.7 notice to beneficiaries. 5) File BOE-502-D. 6) Verify and clear title. 7) Get date-of-death appraisal. 8) List the property. 9) Close escrow. 10) Distribute proceeds to beneficiaries.
Original purchase: $300K. Value at date of death: $900K. Heir sells at $920K. Taxable gain: only $20K (not $620K). The stepped-up basis can save heirs hundreds of thousands in capital gains taxes.
Key statewide forms: BOE-266 | BOE-19-P | BOE-19-B | BOE-19-G
500 W Temple St, Los Angeles
(213) 974-3211
assessor.lacounty.gov
630 N Broadway, Santa Ana
(714) 834-2727
ocassessor.gov
2720 Gateway Dr, Riverside
(951) 955-6200
assessor.riversideca.gov
222 W Hospitality Ln
(909) 387-8307
arc.sbcounty.gov
1600 Pacific Hwy
(619) 236-3771
sandiegocounty.gov/assessor
Every property situation is unique. Let Kevin and Laura review yours and provide guidance tailored to your specific circumstances — no obligation.
Begin a Conversation