Prop 13 and N. CA RE rules re step up in tax basis?
NOTE: Ignore the currently bad RE climate for this question - it is about Prop 13 and the tax implications of buying up.
I am getting conflicting information from 2 RE agents regarding how prop 13 would affect us, were we to sell our home and buy a more expensive one.
We live in Santa Clara County (San Jose), CA. Our home is worth 3x what we paid for it in 1995. I would like to sell this and purchase a home in the $1.5M range.
One RE agent is telling us that as long as one of us is at least 55 years of age, we have a one-time chance to buy a more expensive home w/o our property taxes changing. (In our case, that would mean our property taxes would remain at $300/mo instead of $1,500/mo for this scenario.)
The other RE agent is saying that the restriction on the above is that you can do it if and only if you buy a home of equal or LESSER value. That makes no sense and seems contrary to the intent of prop 13.
Who is right? Any CA RE agents or loan officers out there?
Your input would be greatly appreciated.