BG, I don’t even think we need to worry about the inherited aspect of Prop 13, as long as it was for a **single primary residence,** but do think that we need to allow people to EITHER:
-retain the Prop 13 basis and disallow the stepped-up cost for cap gains upon sale
OR
-allow the heirs to step up the cost basis for cap gains, and use this value for property taxes.
It has to be one or the other. It is totally wrong that heirs get to use their ancestors’ cost basis for property taxes, and then use the stepped-up value for cap gains.
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I know an owner of an older, mid-sized apartment complex in LA, and their property taxes are less than $12,000/year!
