How can I keep the tax basis for our house if we divorce?

The CA State Board of Equalization says that a transfer to one of the spouses due to a court order or settlement agreement in a divorce is automatically excluded from a reassessment (see section 63 of the Revenue and Taxation Code; Rule 462.220). These transfers are automatically excluded and you do not have to file a claim for exclusion as you do in some other circumstances.

A divorce would not affect your taxes until you sold the house. How is a tax agency able to determine the taxes levied until you have a basis, such as a sale price to determine the taxes that would be charged.

This is not like you are getting a gift and the tax basis have changed because of this gift.

Your county taxes would not change because your divorce. Your county taxes are based on the assess value of the county assessor's office.

In the divorce decree the judge might award you the house with the stipulation you buy out the other spouse out. If this is the case, you will have to find out a means of finding the funds to buy your ex spouse's share and pay them out.

If not the divorce decree might offer other assets to offset you getting the house.

The taxes should not affect you getting the house unless you decide to sell the house, at that time, the IRS would have an amount to tax you. I think you are protected by about $250,000. Anything above this amount would be taxable. Without this figure the IRS would not have a figure to tax you on.

For tax and legal matters you should always consult with your tax consultant or attorney.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

I'm an unmarried homeowner in CA so it doesn't apply to me, but it's a very interesting question.

I tried a quick google search and nothing.

Doesn't your attorney know the answer?

Have you called your county assessor? I called with mine regarding changing deed among family members and the assessor was SUPER helpful.

If none of these are helpful, maybe a title company or real estate.

I'd love for you to post the answer when you find it.

The tax assessor can reassess at any time, but in most cases a divorce, resulting in retitling the house solely in your name, does not put up a red flag like a recent sale.

if "you get the house", the other spouse should get 1/2 the equity in the house, so you are going to have to be able to get a mortgage to give them that money or sell the house and split the proceeds - the first 250,000 profit is tax free for a primary residence

I don't think that qualifies as a change in ownership since you're already on the property title, correct?