Thinking about leaving a large Bel Air home for something easier to lock and leave, but worried about a higher property tax bill? You’re not alone. Many long‑time owners want to rightsize while keeping their hard‑earned Prop 13 tax base. In this guide, you’ll see how Prop 19 portability works, what to expect with federal capital gains, and the exact steps to file in Los Angeles County. Let’s dive in.
Prop 19 at a glance
Prop 19 lets eligible homeowners transfer the taxable value of their primary residence to a replacement home anywhere in California. You may qualify if you are 55 or older, severely disabled, or a victim of a qualifying disaster. One of your transactions must occur on or after April 1, 2021, and the other must be within two years. You can use this up to three times if you qualify. See the California State Board of Equalization’s overview for details and examples in the Prop 19 guide.
How your tax base moves
When you downsize, the county compares the market values of your original and replacement homes. If the replacement’s market value is equal to or less than the original, your factored base year value can transfer without an increase. If the replacement costs more, the difference is added to your transferred value using the Board of Equalization’s formula. Review the BOE’s calculation rules and examples in the official Prop 19 overview.
A simple Bel Air example
Say your Bel Air home has a market value of $3,500,000 and an assessed taxable value of $600,000. If you buy a $2,000,000 replacement home, your $600,000 taxable value could transfer, once approved. If you buy higher, the excess over your original market value is added to the transferred amount under BOE rules. Always confirm the final calculation with the assessor before you close.
LA County filing and timing
You must file a claim with the county where your replacement home is located. Common forms include BOE‑19‑B (55+), BOE‑19‑D (disabled), and BOE‑19‑V (disaster), which counties host on their sites and accept after both transactions are complete and you move in. You generally have up to three years from purchase or completion to get full retroactive relief. You can review the standard forms list on the county-hosted BOE forms page.
Local steps to expect
For Bel Air owners, Los Angeles County will process your claim. Ask the assessor to run a projection for your target address before you commit, so you know your likely taxable value after the transfer. Start with the county’s property tax portal FAQs for contact and filing guidance.
Processing and cash flow
Approvals can take time. Some owners see a higher supplemental bill first, then receive a refund after the transfer is granted. Plan for timing gaps and keep copies of all filings and receipts. Regional reporting has noted backlogs since Prop 19 launched, so patience and documentation help. Learn more about the trend in this Prop 19 implementation coverage.
Federal taxes when you sell
Your property tax transfer is separate from federal capital gains. If you meet the ownership and use tests, you can generally exclude up to $250,000 of gain if single or $500,000 if married filing jointly. Review the rules in IRS Topic 701. Keep records of your adjusted basis, including purchase price, qualified improvements, and selling costs, as outlined in IRS Publication 551.
How Prop 19 and IRS rules interact
These rules are independent. You can transfer your taxable value under Prop 19 and still claim the federal home sale exclusion if eligible. If you rented a portion of the home or claimed depreciation, some gain may be taxable due to depreciation recapture. See the IRS guidance on rentals and recapture in the sales and rentals FAQ.
Bel Air costs to budget
LA County’s property tax starts with a 1 percent general levy, plus voter‑approved assessments and direct charges that vary by parcel. Some neighborhoods also carry special assessments that can add material cost. Before you buy, review the county’s explanation of rates and assessments on the LA property tax portal.
Inheritance rules after Prop 19
Prop 19 narrowed the parent‑to‑child and grandparent‑to‑grandchild exclusions. To keep a low taxable value on a family home, the heir generally must make it their principal residence and file for the homeowner’s or disabled‑veteran exemption within one year. High‑value Bel Air properties that are not occupied by heirs often face reassessment to market value. Review the BOE’s Prop 19 overview and discuss timing and options with your advisors.
Quick downsizing checklist
- Confirm eligibility: age 55+, severely disabled, or disaster victim. Check the BOE Prop 19 guide if unsure.
- Get an early projection from LA County for your replacement address using the county portal.
- Keep transactions within two years and plan occupancy before filing.
- Prepare forms BOE‑19‑B/‑D/‑V and file with LA County within deadlines using the county-hosted forms list.
- Model federal taxes with a CPA using IRS Topic 701 and your basis records.
- If passing property to family, review Prop 19 rules and timing with counsel using the BOE overview.
- Expect processing delays; keep organized records and proof of mailing.
Ready to plan a move that fits your lifestyle and your numbers? For discreet guidance, local market insight, and hands‑on transaction management from listing to closing, connect with Simon Mashian.
FAQs
What does Prop 19 mean for a Bel Air homeowner downsizing?
- It lets eligible owners transfer the taxable value of their primary home to a replacement anywhere in California within two years, subject to BOE rules and filing with LA County.
Can you buy first, then sell, and still transfer under Prop 19?
- Yes, as long as one event is on or after April 1, 2021, and the other occurs within two years, and you file the proper claim after you occupy the replacement home.
How long do Prop 19 filings take in Los Angeles County?
- Processing can take time and supplemental bills may arrive first, with refunds later after approval, so budget for interim cash flow needs and keep documentation.
How do federal capital gains affect a Bel Air downsizing sale?
- Federal rules are separate; many sellers can exclude up to $250,000 or $500,000 of gain if eligible, but depreciation recapture may apply if you rented or used part of the home for business.
What should Bel Air heirs know about Prop 19 and inherited homes?
- To keep a low taxable value on a family home, heirs generally must occupy the property and file for the exemption within one year; otherwise a reassessment to market value is likely.
