On Nov, 4, 1986, the voters of California passed Proposition 60 to provide to qualified homeowners the tranfer of the base-year value of their principal residence to a replacement dwelling located in the same county, under certain circumstances.
If you or your spouse that reside with you are age 55 or older, you may buy or construct a new home of equal or lesser value than your existing home and transfer the temded base value your new property.
This is a one time only benefit. You must buy or complete constructionof your replacement home within two year of the sale of your original property. Both the original home and new home must be your principal place of residence, and you must file your claim within three years following the purchase or construction of your replacement home.
Once you have and received this tax relief, neither you or your spouse who reside with you can ever file again.
Eligibilty requirements include:-
- At the date of transfer of the original property, the transferor (seller) must be at least 55 years of age. (If married, only one spouse must be at least 55, but must reside in the residence; if co-owner, only one co-owner must be atleast 55 and must reside in the residence.)
- The replacement property must be purchased or newly constructed on or after NOv.5, 1986. The replacement residence must be purchased or newly constructed within two years before or after the sale of the original residence.
- The sale of the original residence must qualify for reassessment.
- The principal claiment must have been (1) receiving, or eligible for , a Homeowner's Exemption or (2) have been receiving a Disabled Veteran's Exemption on the original and replacement residences.
- The replacement residence must be of "equal or lesser" in market value than the original residence.
- This is only one time filing. Proposition 60 relief cannot be granted if the claiment, or spouse, was granted relief in the past.
Contact your County Assessor's Office as well as Tax Accountant before making any decisions or taking legal action. ( Courtesy of Fidelity national Title)