https://ballotpedia.org/California_Proposition_13_Tax_Transfer_Initiative_(2018)
I don't see anywhere any restriction on how frequently one could buy and sell but I assume maybe 2 years?
In my case I would have been better off selling in Irvine and buying lower with this bill but if it passes anyone over 55 (and it's only one spouse who has to qualify) can buy/sell with property tax basis change an unlimted amount of times.
So.......... is this math correct?
Sell a house with $800K assessed value for $1.5 million
Buy something else (fixer upper, lower cost area, way smaller place etc) for $750K
The new assessed value for the homeowner would be: ($800,000) ? [($750,000) ? ($1,500,000)] = $400,000
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OTOH if the same people decide to buy a $2M house (maybe moving from mello to no mello)
The new assessed value would be: ($800,000) + [($2,000,000)-($1,500,000)] = $1,300,000 This would be $500K (plus costs) oop but property taxes could go down if there were no mello.
Sometime later the homeowners sell the $2M home for $2.5M and buy another house for $1.5M (smaller than the one they started with or a lower cost area).
The new assessed value would be ($1,400,000) ? [($1,500,000) ? ($2,500,000)] = $840,000 (I adjusted the basis upward since prop taxes go up 2% per year.
Net net, I think the homeowners buying/selling twice make no more capital gains than if they had stayed in the first house and sold when the second one would be sold, but their tax basis would be about the same as if they stayed and if they moved from mello to no mello they'd save in property taxes by moving.
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But say the homeowners went hog wild and moved from the $1.5M home to a $3M home.
Their basis would now be $2.3M
($800,000) + [($3,000,000)-($1,500,000)] = $2,300,000
They decide to sell at $3.3M (probably no profit) and move back to a house for $1.5M
($2,300,000) ? [($1,500,000) ? ($3,300,000)] = $1,045,454 (I adjusted the basis up due to property taxes rising 2% per year)
Last one was not a good move as far as property taxes go unless it's moving from mello to no mello and even then there was a big property tax bill with that $3M house even without mello.