Prop 60/90 are California initiatives meant to incentivize homeowners over the age of 55 to downsize by allowing them to take the same low property tax from their long-held home and transfer it to their new home (of course certain rules apply). This allowance can remove some hesitation from seniors who are nervous that their new property tax may be higher than what they are currently paying.
In more detail, Prop 60/90 is a one-time use per household. Even if you use it when your spouse is under 55, once it's used, you are no longer eligible to use it again once your spouse turns 55. You can apply for Prop 60/90 up to three years after you have moved into your new residence. The replacement property must be of equal or lesser "current market value" than the current home you are selling and it must be purchased or built within two years the sale of the original property. It must also be designated as your new primary residence.
Not all counties in California participate in this program but many do. Here is a list of the participating counties:
Alameda San Diego
Los Angeles San Mateo
Orange Santa Clara
San Bernardino Ventura
Since the counties indicated above are subject to change, we recommend contacting the county to which you wish to move to verify eligibility.
As our population continues to live longer, property tax can be an important part of one’s retirement plan. More than ever, it is important that we consider not only where to live but precisely what and when to buy and sell our real property. As with all major financial decisions it is highly advisable to contact financial and real estate professionals capable of addressing complex real estate, tax and planning concerns.
DISCLAIMER: Michel and Jacolyn Bron are not licensed CPAs or attorneys and you are advised to seek professional advice before making any important decisions.
For more information you can go to http://www.boe.ca.gov/proptaxes/prop60-90_55over.htm
If you are thinking of downsizing, we can help!
Call or Email us today at: (310)467-8042 or Info@BronRealtyGroup.com