Have you heard of Proposition 19? If you are 55 years or older, this could be a game changer. In San Diego, property taxes are calculated based on approximately 1.25% of the purchase price. So, let’s say you are 55 years or older and you are selling your house, and you’re currently your house is assessed at $500,000 value. This is based on your initial purchase, and you sell your house for a gain, and you sell it for a million. And your new home that you want to buy is 2 million. Your old property tax is going to stick with you. And this is how it works. When you buy the 2 million, your property tax is not going to be based off the 2 million. It’s going to be based off a neat formula. So, they take what you are buying. So, 2 million minus what you’re selling, 1 million plus what is your assessed value of your current home? 500.That’s 1.5. So, your new property tax is going to be based on 1.5 million, not 2 million. So, you’re immediately seeing tax savings. I’m not a tax advisor, so be sure to speak to your CPA. But if you have any questions about selling and buying at the same time, feel free to ask.
Related topic:
What is your home worth? click here.
Homes for sale in Carmel Valley click here.
Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
