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Baby Boomers Property Tax Benefit in California: Propositions 60 & 90

By
Real Estate Agent with The Carrabba Group/Keller Williams BRE# 01708376

Baby Boomers a Fun Property Tax Benefit in California: One Time Benefit to Senior Citizens:  Propositions 60 and 90 Explained

 

Now that the kids are off to and out of college and having grandchildren it may be time to move and leave that empty nest or should we say, find a loft in Downtown or a Mid Century home in the desert.

 

Guess what? Your current property taxes may be really super/uber low but you may be able to carry your good fortune to your next home.

 

In California if you are age 55 or older and want to sell your current property good old Uncle Sam has a benefit for you. Can you believe that you can purchase a new one of equal or lesser value, and transfer the trended base value of the current property to your new home?  This can add up to substantial tax savings for you!  It’s a one-time only benefit that must be happen within two years of selling your original home.

 

How you ask? Here are more details. Gosh I can’t wait until I am 55! Let’s move on up!

 

Here are the requirements/skinny to use this benefit:  1. You (or your spouse that resides with you) must be 55 or older when the original property was sold.  2. You must buy or complete construction on your new home within two years of the sale of your original property.  3. The new property must be of equal or lesser value of the original home, and both must be used as your primary residence.  4. Your original property must have been eligible for the Homeowner’s or Disabled Veterans’ Exemption.  5. You must file the claim within three years of purchasing or completing new construction of the replacement property.

 

If you are moving into a replacement home in LA County from outside the county you will qualify for the tax relief.  If you are moving outside LA County, we recommend that you contact the county to which you’re moving and ask about their participation in Prop 90 eligibility, since many other counties in California have passed ordinances enabling Prop 90.

 

A few caveats to eligibility are if you gift your original home to a family member, you will not be eligible for these benefits for your replacement property.  If the original property has multiple owners only one owner can receive the benefit.

 

 

So you’ve had your eye on a Mid Century in the Desert? Loft in Downtown? Wine Country paradise? Do it! It’s a just reward for years of hard work. Agreed?

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