4 ms·
Anyone older than 55 is allowed to transfer their basis to a new property. I suspect having to pay capital gains taxes on appreciation over > $500k is a way bi
by usaar333 9y ago
Anyone older than 55 is allowed to transfer their basis to a new property.
I suspect having to pay capital gains taxes on appreciation over > $500k is a way bigger barrier to moving.
e.g. Even if you can't basis transfer, imagine you bought for $500k 20 years ago; it's now worth $1.5M. You should be paying $19k a year in property taxes, instead you are paying maybe $9k.
That extra $10k year going forward is not all that much (16 years of time to matter!) compared to the 33%*$500k = $165k in cap gains taxes you will owe on the sale.
- matt_wulfeck 9y agoWhy would you move to a bigger house at 55 or move at all? And you can only transfer the basis if you downsize or stay the same, which has net zero impact on inventory. Prop13 keeps people in starter homes for much longer.
- davidgay 9y agoMoving to a smaller house when your children have moved out is not exactly uncommon. And that matches moderately well with >= 55 too (kids born when you're 25-35, say, and moving out when they are 20-25).
- DrScump 9y agoAnyone older than 55 is allowed to transfer their basis to a new property Not all CA counties allow that, to my knowledge.