Baby Boomers and Seniors find tax relief through Prop 60
By Molly Cooper
If you are over the age of 55 and thinking about selling your home, you should know the benefits available to you through Prop 60. Prop 60 is a Californian amendment to Prop 13 that allows qualifying homeowners to trans- fer their current tax base year value from their original home to a new home of equal or lesser value. This is a one-time transfer for homeowners looking to move or downsize. As homeowners become seniors and empty nesters, their needs and lifestyles change. How-
ever, many are worried about the tax implications of a move, especially if they are locked into a low tax base. Prop 60 works with these homeowners by allowing the tax base to remain the same.
For example, Karen purchased a home in 1980 for $70,000 and has a current annual tax of $2,200. She wants to sell her home, which now has an assessed value of $1,350,000. She would be able to purchase a home at or below that value and still retain the current tax rate of the original home.
Some qualifying factors to consider are that both the original and replacement properties must be your primary residence and must be eligible for the homeowners’ exemption or disabled veterans exemption. Also, only one spouse needs to be 55 or older at the time the original home is sold to receive the benefit, however, once the home is sold, neither spouse will be able to file for the benefit again. Lastly, the replacement property must be purchased or built within two years of the original property’s date of sale. With Prop 60, homeowners are limited to purchasing within the same county in which the original home was sold. Fortu-
nately, Prop 90 extends the benefits of Prop 60 to homeowners looking to relocate to other counties, however not all counties participate in Prop 90. Currently, there are seven counties that do: San Diego, Orange, Los Angeles, Ventura, Santa Clara, San Mateo, Alameda, and El Dorado. This means that a homeown- er in Placer County could relocate to San Diego County and transfer their current tax base. Prop 90 is a wonderful benefit for Californians looking to retire in coastal and destination counties such as San Diego, or for those wanting to be closer to family.
For more information, visit the website at http://www.
boe.ca.gov/proptaxes/faqs/propositions60_90.htm
Molly Cooper is a 4th generation Realtor with Wil-
lis Allen Real Estate. She can be reached by email at
NadoAgent@gmail.com
Christmas Cards
Sending out Christmas greetings is a tradition that is still common today. Have you ever wondered just how many cards are sent across the country? According to Hallmark Corpo- rate, 1.5 billion Christmas cards, including boxed and individual cards, are purchased and then sent every year in the U.S. This makes Christmas the No. 1 holiday for sending greetings, followed by Valentine’s Day (144 million) and Mother’s Day (133 million).
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