ARE YOU OR YOUR SPOUSE AGE 55+ AND PLANNING TO SELL YOUR CALIFORNIA HOME AND PURCHASE A REPLACEMENT HOME IN CALIFORNIA? READ ON TO DISCOVER BIG TAX SAVINGS...
Have you heard about California Proposition 60/90? It's great for anyone who wants to sell their California home to downsize or move to a different area within California.
If you or your spouse that resides with you is age 55 or older, you may purchase or build a new home of equal or lesser value than your existing home and transfer the trended tax base value to your replacement property. So generally the longer you have owned your home, the greater your tax savings will be!
This is a one-time only benefit (once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again)! You must buy or complete construction of your replacement home within 2 years of the sale of the original property. Both the original home and the new home must be your primary residence. Your claim must be filed within three years of purchasing or completing new construction of the replacement property. If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed.
What does "equal or lesser value" of a replacement property mean?
The meaning depends on when you purchase the replacement property. In general, it 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.
RELOCATING FROM LOS ANGELES COUNTY TO ANOTHER COUNTY?
You may qualify for relief. As of July 18th, 2016 the following 11 counties in California
have an ordinance enabling Proposition 90:
Since the counties indicated above are subject to change, we recommend contacting the county to which you wish to move to verify Proposition 90 eligibility.
Additional details available at the Los Angeles County Assessor's Website