The Prop 19 Mistake That Can 7x Your Property Tax

📋 Free Retirement Readiness Check: https://www.red7wm.com/401k-when-i-re... 📅 Book a complimentary meeting: https://calendly.com/rscappaticci-red... 📞 (619) 704-0140 | ✉️ rscappaticci@red7wm.com Inherited a house in California? Under Prop 19, you have one year to move in or your property tax gets reassessed, and it can jump from $2,000 to $15,000 a year. Here's how to decide whether to keep, rent, or sell. Rosario Scappaticci, MBA, of Red Seven Wealth Management breaks down the three decisions heirs constantly mix up: the property tax (Prop 19), the tax basis (the federal step-up), and what you actually want to do with the house. Plus the San Diego County deadlines, what happens when siblings inherit together, and the title mistake that can cost a family more than $500,000 in taxable gain. CHAPTERS 0:00 3 decisions heirs mix up (only one is urgent) 0:32 Prop 19: you must move in to keep the low tax 1:02 Example: $2,000 → $15,000 a year in property tax 1:30 The "$1 million tax-free" myth 2:24 The allowance changes in February 2027 2:38 Step-up in basis vs. property tax: two separate things 3:32 Two kids, same house: two very different outcomes 4:24 Option 1: Sell 4:42 Option 2: Move in 4:56 Option 3: Rent (and the depreciation trap) 5:40 San Diego County filings & deadlines 6:06 Inheriting with siblings: who gets the low tax? 6:44 Parents still alive? Check how they hold title 7:08 Community property vs. joint tenancy: a $555K difference 7:56 Next steps QUICK SUMMARY • Prop 19: the low property tax only carries over if a child moves in as a primary residence within one year • The ~$1.044M exclusion isn't "tax-free," it raises a ceiling above your parents' assessed value • The step-up in basis is federal, automatic, and separate from property tax • Renting gives up the exclusion and starts depreciation recapture • Community property can mean a full step-up at the first death; joint tenancy only half ABOUT RED SEVEN WEALTH MANAGEMENT Red Seven is an SEC-registered investment adviser in Escondido, California, helping San Diego County families with retirement, tax, and inheritance planning. DISCLOSURE Red Seven Wealth Management is a registered investment adviser located in Escondido, California. This video is for educational purposes only and is not individualized tax, legal, or investment advice. Examples are hypothetical. Property tax rules and deadlines vary by county and are subject to change; consult a qualified tax professional and estate attorney about your situation. #Prop19 #InheritedHouse #CaliforniaRealEstate