Kids gone and you're no longer happy with your home that you have lived in for over 15 years because it was the home you bought for your kids? Step in Prop 19!!
Until prop 19, you could sell your primary residence and buy another home for equal or lessor value, in a cooperating county, and transfer your low property tax base. However, if you spent a dime over, you were forced to pay the higher tax rate regardless by how much it would increase your property taxes. I always think of my parents in this case as they're still in my childhood home. In some cases, they would be increasing their property taxes by 10x!!! Did I mention that you could also only do this one time after the age of 55? Pretty limited especially when I think about my grandmothers who both made it into their 90's.
Enter in Proposition 19!!
1. Statewide- You no longer are dependent on counties cooperating with one another. Move anywhere within California and you're good to go!!
2. Transfer up to 3x- You can transfer your property tax base up to 3 times after the age of 55. Don't get it right the first time? Try again.
3. If the new home is worth a little more than your old home, not a problem. Prop 19 allows you to blend your property tax base if you didn't sell your primary residence for as much as the cost of your new home. The math works as follows:
(Price of New Home - Price of Old Home) x Property tax rate + Property tax rate of old home.
(6 million - 5 million) x .012 (always round up) + $10,000 = $22,000
Without Prop 19, you'd be paying $72,000/year on a new 6 million dollar home. Not a bad deal for getting the home of your dreams!!!
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