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Madelyn Davis's house for sale.


Luvsbway

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I think it's beautiful.  Here's the Zillow, Trulia and Realtor.com listings:

 

http://www.zillow.com/homes/for_sale/Bel-Air-Los-Angeles-CA/20528601_zpid/113688_rid/any_days/globalrelevanceex_sort/34.093273,-118.453538,34.073404,-118.480747_rect/14_zm/

 

http://www.trulia.com/property/3235722559-1282-Casiano-Rd-Los-Angeles-CA-90049

 

http://www.realtor.com/realestateandhomes-detail/1282-Casiano-Rd_Los-Angeles_CA_90049_M15662-28305

 

Crazy California tax laws.  You can see the tax history on Zillow.  Those of you who have homes in California know about Prop 13.  I live in San Diego in a house that's a  fraction the size of this one, and it's definitely not Bel Air, yet I've been paying more property tax for my little house than she was for that glorious home in Bel Air.  It's not right.

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The monthly mortgage payment estimate is a mere $11,321!  At $843 a square foot, I'm in for 10.

It says it was built in 1961.  Wasn't this the year of the Bel Air fire?  I remember Madelyn saying she was there during that. 

Did she have another house that burned down?  If so when did she buy at that address?

Was she still married to the honorable Quinn in 1961?

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The monthly mortgage payment estimate is a mere $11,321!  At $843 a square foot, I'm in for 10.

It says it was built in 1961.  Wasn't this the year of the Bel Air fire?  I remember Madelyn saying she was there during that. 

Did she have another house that burned down?  If so when did she buy at that address?

Was she still married to the honorable Quinn in 1961?

 

Based on the very low tax assessments prior to 2013, the house had to have last been purchased in the '60s.  Wikipedia says the fire happened on November 5, 1961.  Maybe it was a rebuild right after the fire?  Or otherwise survived it.

 

One good thing about this sale is the next owner will have to pay their fair share of taxes.  I don't blame the beneficiaries of Prop 13 because they have no control of the law and pay what they're told to pay.  But it's just aggravating that people can live in the lap of luxury and pay less taxes than those of us in the middle.

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Based on the very low tax assessments prior to 2013, the house had to have last been purchased in the '60s.  Wikipedia says the fire happened on November 5, 1961.  Maybe it was a rebuild right after the fire?  Or otherwise survived it.

 

One good thing about this sale is the next owner will have to pay their fair share of taxes.  I don't blame the beneficiaries of Prop 13 because they have no control of the law and pay what they're told to pay.  But it's just aggravating that people can live in the lap of luxury and pay less taxes than those of us in the middle.

so how much would non-Prop 13 taxes be on a house like this?

I assume Prop 13 kept taxes low as long as you owned the house but when you sell, it goes back up to the market-value assessment of the time?  Does the tax continue to rise along normal levels at this point?  Or is the tax upped in one big chunk when someone else buys?

 

Madelyn's been gone for 5 years, so the house hasn't sold during that time?

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so how much would non-Prop 13 taxes be on a house like this?

I assume Prop 13 kept taxes low as long as you owned the house but when you sell, it goes back up to the market-value assessment of the time?  Does the tax continue to rise along normal levels at this point?  Or is the tax upped in one big chunk when someone else buys?

 

Madelyn's been gone for 5 years, so the house hasn't sold during that time?

 

Prop 13 is still in effect.  Your assumption of how it works is correct.  Taxes can still change from year to year under Prop 13, but there is a cap that only allows the tax to go up a couple percentage points, if at all, regardless of how much the home value goes up.  For example, the home value may increase 25%, but the tax can only go up maybe 2%.  And it can also go down,even though the tax basis is far less than the true home value. So over time there becomes a big disparity between the tax basis for the home and its actual value.  Prop 13 was passed in the '70s, so people living in their homes since that time haven't seen significant increases in their tax.

 

There's a home in my neighborhood with a huge amount of acreage -- basically an entire canyon with about a quarter mile-long winding driveway -- and tennis courts and a swimming pool.  The same people have been living there for decades and they pay less tax than I do.  That seems so wrong to me.

 

But once a home is sold and there is a new owner, there's a clean slate and the tax is based on the new sales value.  The tax rate is about 1.3%, so if this Madelyn Davis home is sold at the asking price of $3.2 million, the tax will be about $42,000 a year, which is a far cry from the $4,400 annual tax she was paying a few years ago.

 

I see that the house was reassessed in 2013 at $1.5 million, up from $323K the year before, but then it dropped to $634K in 2014.  I don't know what's going on with that, but I'm assuming it had something to do with Madelyn's passing and the house remaining within the family and not being sold.  It's certainly worth more than $634K.  But maybe there is a provision in the law that with an inheritance, that tax will be increased, but still with some sort of cap.  The 2015 tax was $8,260.  It's going to be a heck of a lot more next year!

 

Did you ever visit that home, Neil?

 

Something else I don't get.  Lucille Ball's home was last sold in 2010 for $1.8 million, yet it's assessed at $3.8 million with a $42K tax bill.  It was assessed at $3.5 million in 2010 even though it as sold for $1.8 million.  I'm guessing the tax authorities did an assessment at the time of sale and determined that the sales price was under market and did not use sales price for assessment purposes.  http://www.zillow.com/homedetails/1000-N-Roxbury-Dr-Beverly-Hills-CA-90210/20522389_zpid/

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