Transitioning to a new home does not have to mean an increase in property taxes. Today I will explain how two California laws can help homeowners over 55 circumvent this common concern.
Are you or someone you know thinking of downsizing? If this is the case, but you are putting off the transaction because you are afraid your property taxes may go up, I have some important information to share with you.
Did you know that under California Proposition 60, homeowners age 55 and over may be eligible to transfer their property tax base to their new home after the sale of their current property, so long as the move is within the same county?
And under California Proposition 90, homeowners may transfer their property taxes to a home in a different county, provided that that county is eligible. This is a great opportunity for those who are looking to downsize. Transferring your property tax base to a new home can also help you extract equity without losing money in the long run.
As I mentioned before, though, there are some requirements a homeowner must meet to be eligible. First, the homeowner or their spouse must be 55 or older at the time they sell their current home. Next, the replacement property must serve as a principal residence and be of equal or lesser market value to their current home. And finally, the replacement property must be purchased or built within two years of the sale of the original home.
Now, it is important to keep in mind that this is a one-time use policy. But there is an exception. If you were to become seriously disabled after taking advantage of this opportunity, you may be eligible to utilize it a second time.
To learn more about this opportunity, visit http://www.boe.ca.gov/.
As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.