Message Font: Serif | Sans-Serif
No. of Recommendations: 0
What if you bought a home for $300K one year ago and sold it for about that amount now, and bought a new home for $200K?
I wouldn't want to transfer the $300K value to my new home!
I'm trying to decide if I want to fill out the form or not.

If the base year value of your old home is more than the value of your new home, then I would say you wouldn't want to transfer it. What is the base year value of your old home?

How would I know the base year value? All I know is we paid $305K in 2016.

Is that your situation?

Bought for $305k in 2016, sold that property in 2017 or 2018 and bought a new home for $200k?

*IF* that's the case, then I believe you wouldn't want to transfer the base year value.

You want the lower one - which would be $200K.

Probably the easiest way to find out what your value was for the property is to look at the property tax bill.
That will have your base year + adjustments - UNLESS your property value declined between when you bought it and that property tax bill. (or went up less than the ~2%/year prop 13 allows)

I believe that most people who use this are in a situation where they bought for $200k, the house has gone up significantly in 10-20 years while they were raising kids in it, and they want to downsize to a smaller house since the kids are gone. So they sell the house (for example let's say it's worth $1M) and buy a cheaper/smaller one (say for $500K), and transfer the basis to the new home ($200k after 20 years is ~$300k under prop 13, still much less than $500k)
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.