Do you know the difference between Propositions 60 & 90?
If you and/or your spouse is 55 years and older and considering buying or selling a home you should consider this as a must read!
These are California constitutional tax initiatives which allow senior citizens to transfer the base value from their current home to a replacement property provided certain requirements are met. This in turn translates to substantial tax savings, similar in some respects to a 1031 exchange provided the eligibility and qualification requirements are met.
The biggest difference between Proposition 60 and Proposition 90 is that Proposition 60 is geared for transfers of property within the same count (intra-count) vs. Proposition 90 which relates to transfers from one California county to another (inter-count)
As of September 19th, 2013 the following counties in California have an ordinance enabling Proposition 90: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Diego, San Mateo, Santa Clara and Ventura. Needless to say since ordinances are subject to change on a moment’s notice, I would strongly encourage you to contact the county that you are planning to move to and verify the Proposition 90 eligibility.
For your convenience I am also enclosing a link to the California State Board of Equalization about this subject http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#1
Please read the eligibility requirements closely. I will mention just a few here, keeping in mind it is not all of them:
1. You or your spouse residing with you must be of at least 55 years of age when the original property is being sold.
2. The replacement property must be your principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veteran’s Exemption.
3. The replacement property must be of equal or lesser “current market value” than the original property.
There are different levels of eligibility such as definition of spouse, formula for “equal or lesser value”, time periods to take advantage of this tax benefit, hence I strongly encourage you to contact either your tax accountant or your Title Officer before making a final decision. Keep in mind you can only do this once in your life time.
Now if you are ready to buy and sell your primary residence feel free to reach out to me for a no obligation Market Analysis of your residence.
If you are considering buying or selling a luxury home, or an ultra luxury home, or luxury investment real estate, or luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com I am a Pet Friendly Realtor and I contribute a portion of my commissions to local animal rescue organizations.
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