Thursday, February 14, 2013
Let's Play Tax Basis
No doubt Prop 13 has resulted in some perverse outcomes. Here's a chance to play a game called Guess the taxes. Playing today are two properties. Contestant #2 is 80 acres in Sonoma, California.
Contestant #1 is a cute 2+2 on 0.07 acres in bucolic Camarillo, California.
Guess their taxes! As a hint the Camarillo cutie recently got a huge break in their taxable basis.
As another hint the Sonoma property has been paying Prop 13 since 1978 on the 1975 fair market price plus 2% compounded ever since.