Might be moving Will need a shop

[matthewsx]

Occasionally I hear people ask “how does anyone afford a million dollar house?”. It’s simple, they sell their old place for $850K.

Problem is property tax basis going from the $400k you bought it for to $1M, that's a hard pill to swallow when you're at or near retirement age....

John

 

[Winegrower]

Problem is property tax basis going from the $400k you bought it for to $1M, that's a hard pill to swallow when you're at or near retirement age....

Humm...maybe do it the other way around?

 

[matthewsx]

Humm...maybe do it the other way around?

Sure, if you want to move to a place where you can get something in that range.

I like Santa Cruz and won't be moving anytime soon if I have my way....

John

 

[Winegrower]

Problem is property tax basis going from the $400k you bought it for to $1M

California does not directly increase property tax until the place is sold, and then annual taxes are set at about 1.1% of the sale price. So we retired folks don't have to worry too much about increasing property tax...though there are some smaller add-ons that can increase.

Ok, some of you CPAs can clarify/correct what I'm saying here.

 

[mickri]

In California a senior citizen can transfer their lower assessed value from their prior home if certain conditions are met. The purchase price of the new home has to be less than or equal to the sales price of the prior home. Both have to be your primary residence. And you can only do this once. I may be wrong on that. There were some requirements but I don't recall what they were. I met the requirements and was able to transfer the assessed value from my prior home to the new place. Saves me several thousand $$$$ on property taxes.

Getting back to the shed. I ran out of galvanized nails and need a few other things. So I'm off to Lowes to buy more stuff.

 

[matthewsx]

Herein lies the rub....

"The purchase price of the new home has to be less than or equal to the sales price of the prior home."

Waiting for more pics on your shed

John

 

[mickri]

The policy is to help senior citizens who are downsizing and moving to a smaller home. The smaller home should cost less than the house they are selling. Some numbers will help. Assessed value of prior home is $150,000. The senior citizen sells this home for $1,000,000. As long as the replacement home is purchased for $1,000,000 or less the senior citizen can transfer their previous home's assessed valuation of $150,000 to their new home. If the purchase price of the replacement home is greater than $1,000,000 than it is assessed based on the purchase price. I just made these numbers up to illustrate the concept.

Shed pictures

 

[Papa Charlie]

It is starting to look like a shed. Nice job.

Are you planning on adding and vents? When we were living in Antioch, CA the summers were brutal. I added an attic vent in the garage with the thermostat on the fan. It sure helped, not the end all answer but surely helped. I added a switch to override the auto system so that I could vent smoke from welding and vehicles. I had planned on adding a louver on the opposite side to pull fresh air in but never got around to it.

 

[mickri]

There will be vents in the eaves on both sides.

 

[mickri]

It is getting closer to being finished. Finished putting on the roof sheathing today. Tomorrow will be cleaning up loose ends and installing the trim. Might even get a coat of paint on Sunday. I'll take some more pictures tomorrow. Still trying to decide how I will do the doors.