Prop. 13 and Tax-Free Exchanges in California - Posted by Bill Raulin

Real Estate Investing
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Posted by Carl CA on April 17, 2004 at 13:35:11:

Thank you Gaymond,

You’re obviously more versed at this than Bill and me. Thanks for the specific info.

I believe the transfer of basis is only available for your primary residence…no?

Carl

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Prop. 13 and Tax-Free Exchanges in California - Posted by Bill Raulin

Posted by Bill Raulin on April 16, 2004 at 11:52:02:

If someone makes a home for a home tax-free exchange in California and one person is under Proposition 13 and the other person is not under Prop. 13 then how would that factor into the property taxes. Would the person who was under Prop. 13 exchanging for the property that was not under Prop 13 lose his Prop 13 status or would he still be able to keep it.

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Re: Prop. 13 and Tax-Free Exchanges in California - Posted by Carl CA

Posted by Carl CA on April 16, 2004 at 14:39:50:

Hi Bill,

Prop 13 still applies to every home in CA. Your taxes go up on a new purchase (or exchange) because of the reassessment of the new property, which matches the purchase price. There is a way to transfer your current property tax basis to another property, if you qualify. See an experienced RE broker, or your CPA.

Carl

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Re: Prop. 13 and Tax-Free Exchanges in California - Posted by Gaymond Lee

Posted by Gaymond Lee on April 17, 2004 at 12:28:56:

For retaining Prop 13 tax basis, see Prop 60 and Prop 90. Limits apply and not every city particpates with each other. 1031 exchanges only allows you to defer paying the tax on gains (as long as boot is not received), it does not transfer the old tax base to the new property. Hope this helps
http://www.assessor.saccounty.net/general-information/prop13/prop60qa.html

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Re: Prop. 13 and Tax-Free Exchanges in California - Posted by Carl CA

Posted by Carl CA on April 17, 2004 at 13:39:20:

Nevermind, I just found it in your link.

Thanks again,

Carl