Big Tax Break if You're 55 or Older
Did You Know, If You're 55 or Older You Can Get a One Time Tax Break Here's how it works: If you bought a home for $100,000 10 years ago and it is now worth $1,000,000 and you property tax is $1500. If you sell your current home and buy a new home for $1,000,000, instead of paying $12,500 in property tax you can continue to pay $1500 tax basis. Proposition 60, which was passed with HJTA leadership in 1986, allows seniors to transfer the base year value of their home when they sell it and buy another in the same county, provided they meet certain conditions: (a) Both properties must be located in the same county and be eligible for the Homeowner’s Exemption; (b) Homeowners must be at least 55 years of age; (c) The replacement dwelling must be of equal or lesser value than the original property (value calculated by the sales price); and (d) The replacement dwelling must have been acquired or newly constructed within two years of the sale of the original property. Proposition 90, approved in 1988, also extends the transfer of assessed valuation to those moving into other counties within the state. However, participation by each county is voluntary and not many counties adopted Proposition 90. It is important to check with the Board of Supervisors and County Assessor’s office in the county to which you plan to relocate before selling your present home and buying a new one. Please note that Propositions 60 and 90 provide a one-time exemption only. The claimant and/or claimant’s spouse or any co-owner must not previously have been granted the property tax relief provided by Section 69.5 of the Revenue and Taxation Code.
Full Article URL: http://assessor.lacounty.gov/wp-content/uploads/2015/02/E-20.pdf
Written by keith kurlander