Holy prop. 19, I learned something new today.

[GRADS]

The wife and I went looking at 55+ communities today and one of the realtors dropped some VERY helpful information on us. I guess if you're 55 and older you take your current property taxes with you when you buy another house because of proposition 19 that passed a few years ago. This is extremely helpful to us because our property taxes are only $2800 a year since we've lived in our house for 25 years. This really opens up a whole new world to us because we felt our low property taxes were a major thing keeping us from moving.

 

[FROGMAN524]

The wife and I went looking at 55+ communities today and one of the realtors dropped some VERY helpful information on us. I guess if you're 55 and older you take your current property taxes with you when you buy another house because of proposition 19 that passed a few years ago. This is extremely helpful to us because our property taxes are only $2800 a year since we've lived in our house for 25 years. This really opens up a whole new world to us because we felt our low property taxes were a major thing keeping us from moving.

Low taxes matter. Remember that when you vote again.

 

[Havasu blue label]

Low taxes matter. Remember that when you vote again.

Do really think he is going to lower the taxes on the average guy

 

[Taboma]

The wife and I went looking at 55+ communities today and one of the realtors dropped some VERY helpful information on us. I guess if you're 55 and older you take your current property taxes with you when you buy another house because of proposition 19 that passed a few years ago. This is extremely helpful to us because our property taxes are only $2800 a year since we've lived in our house for 25 years. This really opens up a whole new world to us because we felt our low property taxes were a major thing keeping us from moving.

How much additional you pay over that Prop 19 base value, from what I've read, depends on the price of the new residence. If you pay less for the new one than your previous one, you pay the same, nothing discounted.

Here's some explanation of paying the same or paying additional for the new one I found informative.

These examples show the savings in property taxes if the price of your replacement home is higher than the value of your original home.

• Original house sold for $1M.
• Replacement house purchased for $1M
• Difference: 0
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000
• Annual property tax on $1M at 1.25% = $12,500 (without Prop. 19)
• Annual property tax on $325,000 at 1.25% = $4,063 (with Prop. 19)
• Savings: $8,438 per year

• Original house sold for $1M.
• Replacement house purchased for $1.2M
• Difference: $200,000
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000 + $200,000 = $525,000
• Annual property tax on $1.2M at 1.25% = $15,000 (without Prop. 19)
• Annual property tax on $525,000 at 1.25% = $6,563 (with Prop. 19)
• Savings: $15,000 – $6,563 = $8,437 per year

• Original house sold for $1M.
• Replacement house purchased for $1.5M
• Difference: $500,000
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000 + $500,000 = $825,000
• Annual property tax on $1,500,000 at 1.25% = $18,750 (without Prop. 19)
• Annual property tax on $825,000 at 1.25% = $10,313 (with Prop. 19)
• Savings: $18,750- $10,313 = $8,437 per year

You can see that the property tax in these examples increases from $4,063 to $10,313 per year as the cost of a replacement house exceeds the value of an original house. However, Prop. 19 still provides a saving of $8,437 per year.

 

[Boat 405]

Thanks @Taboma Good info right there!

 

[GRADS]

We are looking to do a lateral price move for the most part, maybe go a little higher. Our house is probably worth 650-700K, so our taxes staying at $2800 would be sweet.

 

[Havasu blue label]

Great information thanks

 

[GRADS]

How much additional you pay over that Prop 19 base value, from what I've read, depends on the price of the new residence. If you pay less for the new one than your previous one, you pay the same, nothing discounted.

Here's some explanation of paying the same or paying additional for the new one I found informative.

These examples show the savings in property taxes if the price of your replacement home is higher than the value of your original home.

• Original house sold for $1M.
• Replacement house purchased for $1M
• Difference: 0
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000
• Annual property tax on $1M at 1.25% = $12,500 (without Prop. 19)
• Annual property tax on $325,000 at 1.25% = $4,063 (with Prop. 19)
• Savings: $8,438 per year

• Original house sold for $1M.
• Replacement house purchased for $1.2M
• Difference: $200,000
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000 + $200,000 = $525,000
• Annual property tax on $1.2M at 1.25% = $15,000 (without Prop. 19)
• Annual property tax on $525,000 at 1.25% = $6,563 (with Prop. 19)
• Savings: $15,000 – $6,563 = $8,437 per year

• Original house sold for $1M.
• Replacement house purchased for $1.5M
• Difference: $500,000
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000 + $500,000 = $825,000
• Annual property tax on $1,500,000 at 1.25% = $18,750 (without Prop. 19)
• Annual property tax on $825,000 at 1.25% = $10,313 (with Prop. 19)
• Savings: $18,750- $10,313 = $8,437 per year

You can see that the property tax in these examples increases from $4,063 to $10,313 per year as the cost of a replacement house exceeds the value of an original house. However, Prop. 19 still provides a saving of $8,437 per year.

Yes thanks for the info.

 

[GRADS]

Finally living in the same house for 25 years might pay off.

 

[Riverbound]

Interesting. Do both have to be 55+ to qualify?

 

[GRADS]

Interesting. Do both have to be 55+ to qualify?

No.

 

[Mandelon]

I think you can only do it once though. Make sure you like that new house!!

 

[Gelcoater]

I think you can only do it once though. Make sure you like that new house!!

More importantly, make sure you like the neighbors

 

[GRADS]

I think you can only do it once though. Make sure you like that new house!!

I thought I read 3 times but I could be wrong. Also I'm hoping my next move is the last. I moved around a lot as kid so as an adult I've lived in 2 house since I was 23.

 

[GRADS]

More importantly, make sure you like the neighbors

This is so true. My current house only borders 2 other houses. My next door neighbors moved in 2 months after we did 25 years ago and we literally hit the neighbor lotto with them. The people behind us are also good neighbors and have lived there for 15 years.

 

[Sharky]

$2800 a year. . . . wish my property taxes where that low.

Move to Colorado. . . . my property tax is almost $4K a year. And, its going to go up this year.

On a house that "might" sell for $900K. Houses in the hood are going for over $1 mil.

Original house cost $14K in 1962. Wife bought it in 1989 for $80K

 

[napanutt]

I pay around 7000 a year on a 500,000 house.
I’m still ahead compared to CA because of no state income or sales tax.

 

[FROGMAN524]

Do really think he is going to lower the taxes on the average guy

Who is he?

 

[bilz]

I pay around 7000 a year on a 500,000 house.
I’m still ahead compared to CA because of no state income or sales tax.

But yore missing the weather

 

[playdeep]

Who is he?

Guy's a clown...
Let him spew drivel.

 

[napanutt]

But yore missing the weather

We actually get weather.
I mean seasons.

 

[GRADS]

We actually get weather.
I mean seasons.

I've worn shorts all this week.

 

[Good Stuff]

How much additional you pay over that Prop 19 base value, from what I've read, depends on the price of the new residence. If you pay less for the new one than your previous one, you pay the same, nothing discounted.

Here's some explanation of paying the same or paying additional for the new one I found informative.

These examples show the savings in property taxes if the price of your replacement home is higher than the value of your original home.

• Original house sold for $1M.
• Replacement house purchased for $1M
• Difference: 0
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000
• Annual property tax on $1M at 1.25% = $12,500 (without Prop. 19)
• Annual property tax on $325,000 at 1.25% = $4,063 (with Prop. 19)
• Savings: $8,438 per year

• Original house sold for $1M.
• Replacement house purchased for $1.2M
• Difference: $200,000
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000 + $200,000 = $525,000
• Annual property tax on $1.2M at 1.25% = $15,000 (without Prop. 19)
• Annual property tax on $525,000 at 1.25% = $6,563 (with Prop. 19)
• Savings: $15,000 – $6,563 = $8,437 per year

• Original house sold for $1M.
• Replacement house purchased for $1.5M
• Difference: $500,000
• Factored base year value of original house: $325,000
• New base year value of replacement house: $325,000 + $500,000 = $825,000
• Annual property tax on $1,500,000 at 1.25% = $18,750 (without Prop. 19)
• Annual property tax on $825,000 at 1.25% = $10,313 (with Prop. 19)
• Savings: $18,750- $10,313 = $8,437 per year

You can see that the property tax in these examples increases from $4,063 to $10,313 per year as the cost of a replacement house exceeds the value of an original house. However, Prop. 19 still provides a saving of $8,437 per year.

Just keep in mind for anyone using this that any MelloRoos/Special Assesments/CFD’s ,which are really the same thing with three different names, are not lowered. They are typically the flat fee portion of any tax bill. So if you buy in a brand new development there will still be additional higher taxes to keep in mind.

 

[GRADS]

Just keep in mind for anyone using this that any MelloRoos/Special Assesments/CFD’s ,which are really the same thing with three different names, are not lowered. They are typically the flat fee portion of any tax bill. So if you buy in a brand new development there will still be additional higher taxes to keep in mind.

True but I'll be paying a lot less taxes than anyone else in the hood.

 

[Radioactive]

Prop 19=Death Tax

When you die, the property tax goes to current market value. Unless your offspring move into it. If you have multiple properties, they all get reassessed to current market value the day you die.

 

[DRYHEAT]

True but I'll be paying a lot less taxes than anyone else in the hood.

Come on man, pay your fair share!

 

[GRADS]

Prop 19=Death Tax

When you die, the property tax goes to current market value. Unless your offspring move into it. If you have multiple properties, they all get reassessed to current market value the day you die.

No offspring, don't care.

 

[El Rojo]

Prop 19=Death Tax

When you die, the property tax goes to current market value. Unless your offspring move into it. If you have multiple properties, they all get reassessed to current market value the day you die.

But can't the property be put in trust to avoid that? or titled differently like a "joint tenants right to survivorship" or something along those lines?

 

[PlanB]

But can't the property be put in trust to avoid that? or titled differently like a "joint tenants right to survivorship" or something along those lines?

Dealing with this on my mom's house right now. She has dementia and we have been talking to lawyers that specialize in this. So far it looks like we are screwed when she dies. As far as moving into the house, anything over a million dollars of the original base value is taxed at current market value. Prop 19 absolutely sucks for inherited properties.

 

[Radioactive]

Key word = "Primary Residence" , only the primary residence, and you have to reside in it to keep property taxes as is.

 

[Looking Glass]

Come on man, pay your fair share!
View attachment 1472807

 

[HTTP404]

The wife and I went looking at 55+ communities today and one of the realtors dropped some VERY helpful information on us. I guess if you're 55 and older you take your current property taxes with you when you buy another house because of proposition 19 that passed a few years ago. This is extremely helpful to us because our property taxes are only $2800 a year since we've lived in our house for 25 years. This really opens up a whole new world to us because we felt our low property taxes were a major thing keeping us from moving.

Pretty fucked up that you try and screw the government out of their fair share.

 

[GRADS]

Prop 19 absolutely sucks for inherited properties.

I wish I could inherit something.

Key word = "Primary Residence" , only the primary residence, and you have to reside in it to keep property taxes as is.

I'm not a baller like most on here. I have one residence.

 

[white tortilla]

This is so true. My current house only borders 2 other houses. My next door neighbors moved in 2 months after we did 25 years ago and we literally hit the neighbor lotto with them. The people behind us are also good neighbors and have lived there for 15 years.

As the resident lib wouldn’t you promote higher tax rates to take care of all of the programs your agenda supports. Trying to take advantage of a property tax loophole while I support it, would probably prevent the funding for the kids get the gender reassignment surgeries.

 

[FishSniper]

As the resident lib wouldn’t you promote higher tax rates to take care of all of the programs your agenda supports. Trying to take advantage of a property tax loophole while I support it, would probably prevent the funding for the kids get the gender reassignment surgeries.

I find it hilarious he didn’t know about this. I think this is just another troll thread.

 

[GRADS]

As the resident lib wouldn’t you promote higher tax rates to take care of all of the programs your agenda supports. Trying to take advantage of a property tax loophole while I support it, would probably prevent the funding for the kids get the gender reassignment surgeries.

I'm not the resident lib, more of the resident moderate at this point.

I find it hilarious he didn’t know about this. I think this is just another troll thread.

You knew this and didn't tell me?

 

[DRYHEAT]

Dealing with this on my mom's house right now. She has dementia and we have been talking to lawyers that specialize in this. So far it looks like we are screwed when she dies. As far as moving into the house, anything over a million dollars of the original base value is taxed at current market value. Prop 19 absolutely sucks for inherited properties.

Might be worth a second opinion, had a friend move into his mothers house, although I believe it was before she passed and had the title transferred and was able to keep the original tax basis. This has been a few years, so maybe things have changed.

 

[PlanB]

Might be worth a second opinion, had a friend move into his mothers house, although I believe it was before she passed and had the title transferred and was able to keep the original tax basis. This has been a few years, so maybe things have changed.

I have talked to a couple of lawyers so far, but we are not done. I can't do a title transfer because of her diminished mental capacity. The problem with moving into her house is it looks like I would lose Prop 13 protection on my current residence because you can only have one primary residence. I have a friend dealing with the same issue right now on his parent's beach house and he is looking at 25K a year in property taxes because of the valuation of the house. Fucked up situation.

 

[rivermobster]

I think you can only do it once though. Make sure you like that new house!!

Apparently not! I thought it was a one time deal also...

Transferring Base Year Value | Orange County Assessor Department

Transferring Base Year Value Generally An eligible homeowner may transfer the taxable value of their home to a replacement property anywhere within California up to three times. Filing a form is required and the transfer must meet certain conditions; more information and forms are provided...

www.ocassessor.gov

 

[GRADS]

Apparently not! I thought it was a one time deal also...

Transferring Base Year Value | Orange County Assessor Department

Transferring Base Year Value Generally An eligible homeowner may transfer the taxable value of their home to a replacement property anywhere within California up to three times. Filing a form is required and the transfer must meet certain conditions; more information and forms are provided...

www.ocassessor.gov

BOOM!

 

[BingerFang]

I'm not the resident lib, more of the resident moderate at this point.

It’s so funny to hear all these libs consider themselves “moderate” all of a sudden. No one wants identify with the left anymore

 

[sintax]

Just was reviewing this bill and noticed it said you can also qualify if you're home was caught in a wild fire or other natural disaster.

that seems pretty damn applicable right about now to a whole mess of people.

 

[Taboma]

Just was reviewing this bill and noticed it said you can also qualify if you're home was caught in a wild fire or other natural disaster.

that seems pretty damn applicable right about now to a whole mess of people.

Even in 2007, the San Diego County Accessor provided an exception to allow us to move our Prop 13 Tax basis to another residence of equal or lessor market value if we chose not to rebuild.
If more, then it would step up in a similar manner as I'd posted previously.

Due to the increasing foreclosure market at that time, we spent almost a year researching the used and foreclosure markets before choosing to rebuild.
A few neighbors chose to move, but most ended up rebuilding.

The carrot for rebuilding was all the extra money available for Code and other compliance requirements. With our policy, these upgrade amounts could account for an additional 50% over the stated policy limits.

If we'd decided not to rebuild, our insurance payout would've been limited to the cost of rebuilding our previous home, up to the stated policy limited.
In a sense, we'd be leaving a lot of cash on the table.
With those additional funds and a bit from our personal property payout, we were able to build a substantially nicer home, far better than what we could have bought on the market at that time.

 

[thetub]

you were always able to do this without prop 19

prop 19 was a reach around for prop 13

now families who transfer anything else besides a primary residence of a cap of a million dollars will be reassessed

so any investment properties valued over a million will be reassessed upon transfer not a good thing

its a money grab and was promoted by the nice cute little hosedraggers and realtors ...

realtors short sightly did it to promote sales and hose draggers for more money as usual

imagine paying a mortgage and now having a second mortgage payment equivalent (property taxes) on top of it another liberal looney prop...

 

[thetub]

just another way to kill the middle class and let large corps like blackcock get larger and larger... liberals utopia..

everyone be poor together..

 

[Hypnautic]

Ca has been fighting to get rid of Prop 13 for some time.
It forced homes to be sold when family passes as the heirs cold not afford the tax increase.
It stripped away Investment and Commercial transfers as well.
Only way to avoid a property tax increase upon passing is to create an LLC for each home/investment. That LLC will create shares that can then be passed down through generations. The owners of the LLC must maintain at least 50% control/ownership of LLC and can gift the other share to heirs at any time. When the owners of the remaining shares pass--the heirs will only have to pay a small tax on the value of the remaining shares. The ownership of the home never changed- and there is no property reassessment- -the LLC still remains the owner of the property--just the ownership of the LLC changed.
It is expensive to do--expect around 25-50K to do it correctly. It also takes time. You have to create an LLC as an owner, then transfer that LLC to a new LLC that is the business with shares. Time lapse between those two LLC should be at least 2 years to avoid a CA audit--as they are watching for this workaround.
That cost sounds high but it could only represent 1,2 or 3 years of increased property taxes if reassessed.

If anyone has high value real estate and needs a referral--let me know and I can send you contact info for the firm we use.

 

[Hardly Satisfied]

Great info. Thanks for sharing

 

[badgas]

Prop 13 allowed you to do the same thing one time as long as the counties reciprocated. The provision in 19 can be used every two years and works with any county in the State. You can also use it if you are displaced by wildfire.

 

[Good Stuff]

True but I'll be paying a lot less taxes than anyone else in the hood.

Definitely! I just have a lot of clients thinking that it drops all the taxes down until I explain it and direct them to the state or county websites. For a senior that has extremely limited income it can really mess things up if they don’t realize that. For anyone else that meets the age requirements it’s a great program even with special assessments. Also now with prop 19 there is an immediate step up in assessed value with parent to child or grandparent to grandchild inheritance unless they make it a primary residence within the time period (I think it’s 6 months or 1 year). I’m not sure if they can turn it back into a rental after that and a trust should allow them to sell the property and avoid a big supplemental tax bill between death and sale depending on the county and how they approach it. The prop 60/90/110 base used to just transfer to the heirs but the program wasn’t statewide. Only certain counties would allow the transfer of tax base before prop 19 made it statewide. Overall a great program that was an easy one to vote for.

 

[Sherpa]

prop 19 allows you do do this anywhere in Calif now. it used to be only 13 counties that subscribed to the previous bill.

and you can do this sell--buy 3 times now, it used to be just once.........

so: anywhere in Calif.

sell - buy 3 times......


--Sherpa

I'm definitely doing this...