What is Proposition 19?

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.

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

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Shirin Rezania Ramos, Realtor®