Real Estate Property Tax Breaks for Seniors

Tax Break for Seniors
Proposition 60/90

Proposition 60:
Taxpayers 55 years old or older can transfer the Proposition 13 tax base year assessment  of his or her principal residence to any replacement dwelling.  The replacement  dwelling must be of equal or lesser value within the same county. 

Proposition 90:
Taxpayers 55 years old or older can transfer the Proposition 13 tax base year assessment of his or her principal residence to any replacement dwelling.  The replacement dwelling, only in certain circumstances, can be a dwelling in another county. 

Requirements

-     The seller of the original residence or spouse residing with the seller must be 55 years or older.  One of the spouses must be 55 years old as of the date of the sale or transfer.

-      The replacement property must be of equal or lesser value of the original property.  Or the replacement property must have the same or lesser market value of the replacement property.

. The meaning of "equal or lesser value" depends on when you purchase the replacement property. In general, "equal or lesser" value means:

• 100% or less of the market value of the original property if a replacement property was purchased or newly constructed before the sale of the original property, or
  
  
• 105% or less of the market value of the original property if a replacement property was purchased or newly constructed within the first year after the sale of the original property, or
  
  
• 110% or less of the market value of the original property if a replacement property was purchased or newly constructed within the second year after the sale of the original property.

-      The tax base can only be transferred to the replacement property once the original property is sold.

-      Two years before or after the orginal dwelling is sold the replacement property must be purchased.  The replacement property can be new construction.

-      The owner must file an application within three years from the date of purchase of the their replacement property.

-      Proposition 60/90 can only be a one time filing for the claimant or spouse.

-      Real property eligible for relief: single family homes, condominiums, units in planned unit developments, cooperative housing, community apartment units, mobile homes that  are subject to local real property tax.

For more information call: Property Tax Office: (916) 445-4982 or (213) 893-1239

Http://assessor.lacounty.gov/extranet/guides/prop6090.aspx
 
This information deemed correct but not guaranteed. Consult with a tax professional and  or tax attorney.

Gail Mercedes Cole
Keller Williams Realty
4644 Admiralty Way
Marina Del Rey, CA
(310) 702-6248
gailmercedes@aol.com