What is the difference between Proposition 60 and 90?
Every California Home Owner should be familiar with this important question if they are considering selling, downsizing their home or buying up. My focus is on Los Angeles County home sellers. I have written about this a few years ago, but I find it is worth to remind everyone again.
Needless to say before I answer that questions I would like to clarify that these are California Constitutional initiatives which allow senior citizens to transfer the base value of their current home to a replacement property.
There are a few points I must further clarify. The biggest question is who Qualifies?
The answer is: one of the home owners i.e.: you or your spouse who resides with you has to be age 55 or older. The new home you may buy or construct of equal or lesser value than your existing home. This is a onetime benefit which can be used.
The replacement property must be a principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption just as the original property.
The replacement property must be purchased or built within two years before or after the sale of the original property.
Now to my original question: Proposition 60 relates to transfers within the same country i.e.: intra-county. While Proposition 90 relates to transfers of base value from one county to another county in California (inter-county).
What is the deadline for filing? The answer is very clear. A claim must be filed within three years of purchasing or completing a new construction of the replacement property.
Now with that said I would strongly encourage you to bring this conversation up with your Tax Advisor when you sold your home. Most people do not wait two or three years they file their claims right away because otherwise it can be forgotten.
Now if you are looking to sell your home in the Greater Los Angeles please reach out to me and I will remind you of Proposition 60 & 90 when you are in EscrowJ!
If you are considering buying or selling a home, a luxury home, luxury investment real estate, 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 contact me at310.486.1002 (m) or 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 commission to local animal rescue organizations
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