It used to be that in California if you inherited a property, the property tax basis stayed the same. With Prop 19, an heir has to move in within a year or the property tax assessment resets. It also only covers the first million in gain, so if the difference is higher, you’ll pay more.
It would be a pretty big jump up in property tax assessment well as other things you are trying to do to keep your workshop. That said, the value of the property should continue to rise and presumably you’ll still make positive cash flow even with the higher property tax. Might not be the best return to hold on, but if you are otherwise financially on track, it wouldn’t be the worst thing in the world to hold onto the property.
It would be a pretty big jump up in property tax assessment well as other things you are trying to do to keep your workshop. That said, the value of the property should continue to rise and presumably you’ll still make positive cash flow even with the higher property tax. Might not be the best return to hold on, but if you are otherwise financially on track, it wouldn’t be the worst thing in the world to hold onto the property.
Statistics: Posted by mchampse — Mon Feb 24, 2025 1:44 am — Replies 1 — Views 103