Why someone can have tax assessment far less than sold price

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Submitted by penny on June 5, 2018 - 12:33am

During the house market research in 92130 I found a house sold for 900k in 2015 but the property tax assessment last year is only 600k I cannot believe it how it is possible I check the tax bill the land is only 100k+. The neighbor ones sold for same price all has 1m assessment with 500k for land.

Submitted by flu on June 5, 2018 - 6:33am.

lots of ways... for example if they are seniors Prop 60 and Prop 90.

great way to leave your kids properties too. when you die, they get to keep your property tax basis. so prior to that, exchange to a home a more expensive home to lock in the old tax basis , then they inherit it.

that's probably why there's a big devidd in CA home owners and non home owners. Existing home owners have so many advantages to just keep rolling properties into more properties. not just for them, but for their kids.

Hence why some people will keep accumulating and never sell.

even better now that inheritance tax for most of us has been eliminated .

Submitted by FlyerInHi on June 5, 2018 - 8:06am.

Yet, some people keep on leaving California.

Submitted by flu on June 5, 2018 - 10:06am.

sink or swim. it's not that hard to figure that one out. the great wealth inequality divide is about to get a lot worse.

Submitted by AN on June 6, 2018 - 9:58pm.

flu wrote:
sink or swim. it's not that hard to figure that one out. the great wealth inequality divide is about to get a lot worse.

Just look at the bay for prime example.

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