Keeping It REAL - by Bettsy Tyler

  PROP. 19 RULES APPLY  ON AND AFTER APRIL 1, 2021     Proposition 19 would allow transfer of tax basis where either the sale of a primary residence takes place before April 1, 2021, as long as the subsequent purchase takes place within two years and on or after April 1, 2021. 🏠 Alternatively, a conservative interpretation could require that both the sale and purchase must occur on or after April 1, 2021. 🏠 The Bottom Line: As always, is to talk with your legal or tax advisors — especially on an issue that is so consequential and new.   CALCULATING THE TAX BASIS  OF THE NEW PROPERTY UNDER PROP 19   How to determine the tax basis of the new property?   Rule 1:  If the replacement property is of equal or lesser value to the original primary residence, then the taxable value of the replacement property remains the same as that of the original primary residence. Rule 2:  If the replacement property is of greater value than the taxable valu...

Proposition 19: Passed November 2020 What it Means for Homeowner Tax Savings Now Everywhere in the State   It once was that if you were over 55 and wanted to keep your property tax base of your primary residence, you would have to move to a lesser valued home than the one you were selling and stay in the same county – or move to Alameda, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, or Ventura county. With the passage of prop 19, now you can move to anywhere in the state and keep your tax base. And it doesn’t have to be a cheaper home than what you sell. There are details, of course, that one must follow and abide by to take advantage of this, but it’s much easier now to downsize or retire or simply move to a new place, and keep your 30 year old tax base.    Prop 19 Overview    Homeowners who are 55 or over, severely disabled, or whose homes were destroyed by wildfire or natural disaster, may transfer the taxab...

"2020 will be known for a lot of things, and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” prominent economist Daryl Fairweather said. 1 And he’s right: most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages. But, rather than a slowdown, we are continuing to experience a surprisingly robust real estate market across the country and locally. Experts estimate that these conditions are likely to last well into the new year. Fannie Mae Senior VP and Chief Economist Doug Duncan predicts that existing home sales will ultimately “be up a percent or more in 2021.” He believes home prices will continue to rise due to limited inventory, but he is confident the Federal Reserve will keep interest rates low into the future, which will be “very good for households.” 2 Market conditions like fewer available listings, changing criteria for desired ...

  For years now, virtual home tours have helped real estate buyers far and wide find the perfect home. From long-distance military personnel being relocated, to investors expanding their portfolio, to homeowners looking for a vacation getaway, this technology makes finding a house that’s a bit out of driving distance much easier. And for real estate agents, virtual tours have been a useful way to help buyers with their home search and to assist sellers in creatively marketing their listings.   Because of the pandemic, virtual home showing options recently experienced a huge spike in popularity. One survey found that nearly 33% of recent home tour requests were for virtual tours, as compared to just 2% pre-pandemic. 1 And it’s easy to see why.   Buyers want to quickly find their next safe haven, one that may need to serve as their office, gym, and even classroom for months to come. And sellers want to limit the number of strangers in their home, yet still have the a...