[quote=sdrealtor]Stupid Prop 13 question as I dont completely understand the details. Does the ability to pass a tax basis to heirs only exist for pre-1978 purchases or does it apply to all homes?[/quote]
I’m sure this question must be thrown out there for “bait” but I’ll take it anyway, lol :=]
I believe it applies to all properties. HOWEVER, it doesn’t make sense for heirs to hang onto a property with high taxes that they can’t maintain. In order to get taxes anywhere close to those orig owners who enjoy their “frozen F/Y ’75/76 assessment (+ 2% per yr),” you would have had to “inherit” a property which was purchased perhaps =<1985.
Another way to obtain a very low tax basis is to "inherit" a property in a good area that your parents purchased as a fixer between '79 to perhaps '88 or '89 and rehabbed it top to bottom without increasing the footprint (thus it was never reassessed from that "fixer" purchase price).
In addition, I believe the familial transfer deed should indicate -$0- in tax stamps (no money exchanged hands) or an amt in tax stamps <=to the current assessed value of the property. The Assessor Change of Ownership form should indicate that the transaction was a familial transfer.
Disclaimer: I am not an attorney and this post should not be construed as legal advice.
