Indeed. I was trying to allude to that. California has a max of about 1.5% increase per year but it also resets however there are some exemptions if you sell and purchase a new home in a certain period of time you can keep your original cost basis. I am not 100% on the details or intricacies of that but I don’t know if you can take a $200k cost basis and move it over to a $3 million home. Which if you owned a home for 30-40 years is entirely plausible in California.
“$200k cost basis and move it over to a $3 million home. “
That is for income tax calcs. Only $500k per couple is exempt’
If you sell your $200k home for $1 million, you will immediately owe taxes on $300k.
There is Prop 19.
Current laws allow seniors over 55 years old and severly disabled persons to transfer the taxable value of their existing home to their new replacement home, so long as the market value of the new home is equal to or less than the existing home’s value.