Homeowners who want to downsize or move into a single story home need to know that, if they are 55 years of age or older and buy a home that is equal or lesser in value than their existing home, they can transfer the tax base on their current home.
In other words – seniors (55 or older) can retain the tax base on their original home even if they buy a new house. Proposition 60 & 90 provide seniors this one time program if they buy and sell within two years. The properties must also be the principal place of residence – no vacation homes.
Proposition 90 allows seniors to transfer their current taxable value into San Diego County even if they move from another county in California. Grandparents who want to move closer to their children can make that move and not give up their tax base – which will save them thousands of dollars.
Here’s an example – Original home purchase price -$195,000 with property taxes at approximately $2,000/year.
Sold home for $620,000.
Bought a new one story home for $590,000 – seniors who transfer their tax base will pay the same property taxes on their original home – approx. $2000/year -not almost $6,000/year.
The intent of the program was to give seniors the ability to move without the penalty of paying increased property taxes. Details at – http://www.boe.ca.gov/proptaxes/faqs/caproptaxprop.htm#6
Here are the Key Factors -
1. New purchase ( AKA – replacement home) must be bought within 2 years after the sale of the original home.
2. Claims must be filed within 3 year of buying or building the replacement home. ( the paperwork is easy )
3. The replacement home must cost less or equal to the sale of the old home. If you buy within 1 year an additional 5% increase is allowed and 10% if you buy between 1 and 2 years.
The new home must be in San Diego County or the following counties – Alameda, Los Angeles, Orange, Santa Clara, San Mateo or Ventura and is subject to change. Riverside is not included .
For more questions about Props 60 and 90 contact me Janet McCarthy 858-243-5719 or call San Diego Tax Assessor at 619-531-5507
Contact me today to help you find the perfect single story home in Rancho Bernardo.
Filed under: Uncategorized | Tagged: Downsize, one story homes, proposition 60, props 60 and 90, retain tax base, single story homes, transfer tax base | Leave a Comment »