How is the value of my new replacement property calculated?
If the market value of the replacement is within 120 percent of the market value of the property substantially damaged or destroyed, the factored base year value of the damaged or destroyed property will be transferred to the replacement. Ref. R&T 69(b)(1) If the market value of the replacement is more than 120 percent of the market value of the property substantially damaged or destroyed, the base year value of the replacement will be the factored base year value of the damaged or destroyed property plus the amount by which the value of the replacement exceeds 120 percent of the value of the property that was damaged or destroyed. Ref.
A. If the market value of the replacement is within 120 percent of the market value of the property substantially damaged or destroyed, the factored base year value of the damaged or destroyed property will be transferred to the replacement. Ref. California Revenue & Taxation 69(b)(1) Example: Market value of damaged or destroyed property = $220,000 Market value of replacement property = $253,000 Percentage above value of damaged or destroyed property = 15 percent Base year value of replacement = $220,000 If the market value of the replacement is more than 120 percent of the market value of the property substantially damaged or destroyed, the base year value of the replacement will be the factored base year value of the damaged or destroyed property plus the amount by which the value of the replacement exceeds 120 percent of the value of the property that was damaged or destroyed. Ref.
If the market value of the replacement is within 120 percent of the market value of the property substantially damaged or destroyed, the factored base year value of the damaged or destroyed property will be transferred to the replacement. Ref. California Revenue & Taxation 69(b)(1) Example: Market value of damaged or destroyed property = $220,000 Market value of replacement property = $253,000 Percentage above value of damaged or destroyed property = 15 percent Base year value of replacement = $220,000 If the market value of the replacement is more than 120 percent of the market value of the property substantially damaged or destroyed, the base year value of the replacement will be the factored base year value of the damaged or destroyed property plus the amount by which the value of the replacement exceeds 120 percent of the value of the property that was damaged or destroyed. Ref.
