sduuuude – this is one of the major loopholes with Prop 13 – commercial real estate is rarely re-assessed for tax basis because the property is sold inside the corp and, for tax purposes, did not get ‘sold’
being unable to increase the tax basis on existing commercial real estate is one of the motivations for cities to approve more strip malls, housing tracts, etc – new construction means new tax income at the current tax basis
