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 an exclusion cap of $1,044,586 (transfers Feb 16, 2025 – Feb 15, 2027). 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-19-P (parent-child exclusion — file within 3 years of the transfer) + BOE-266 (Homeowners’ Exemption — the heir must file within 1 year). Seniors 55+: BOE-19-B (file within 3 years).
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 generally required when property is not held in a trust or joint tenancy and the estate is above California’s small-estate limits. 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 first overbid is the accepted offer plus 10% of the first $10,000 and 5% of the balance (Probate Code §10311) — on a $500,000 offer, at least $525,500.
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 — or until your tax-return due date, if that comes first (file an extension to keep the full 180). A qualified intermediary holds your proceeds — you cannot touch the funds. To defer all of the gain, buy a replacement of equal or greater value and reinvest all the cash. California has claw-back rules for out-of-state exchanges (FTB Form 3840, filed every year until the deferred gain is recognized).
Delayed (most common), Reverse, Improvement/Construction, and Simultaneous. Since 2018, only real property qualifies — personal property exchanges are no longer allowed.
Missing the 45-day identification deadline is fatal — there are no ordinary extensions. 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 of death.
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 ConversationGeneral information, not legal or tax advice. Laws, figures and deadlines change — verify with your attorney or CPA before acting. Figures checked October 2026. LK Fox Real Estate · Laura Fox CA DRE #01750945 · Kevin Fox CA DRE #01330038 · brokered by TNG Real Estate · Equal Housing Opportunity.