If you’re over 55 and looking to move or downsize, you might be wondering how you’ll be able to afford to buy another home in San Diego County. Luckily, there’s a great program in place to help. Propositions 60 and 90 are California constitutional amendments designed to give older homeowners some substantial tax savings*. Here at The Roby Company, we’ve compiled some answers to common questions about Propositions 60 and 90 to help you understand this fantastic program!
What Are Propositions 60 and 90?
Propositions 60 and 90 allow people age 55 and older to transfer their base year value on property to their newly acquired home. Proposition 60 is an intra-county amendment. Use it when you are moving within the same county. Proposition 90 is an inter-county amendment, and it applies if you are moving from and to the following counties: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Diego, San Mateo, Santa Clara, and Ventura.
How Can This Program Save Me Money When Selling My Home?
When you file Proposition 60 or 90, you can transfer the base year value of your old home to your newly acquired home. This helps prevent shocking increases in property tax, so you can find a new home in the current real estate market without worry.
Are There Limits on What Kind of Home I Can Buy Next?
When you buy your new home, the new property must be of equal or lesser “current market value” than the original property. This means that the current value of your old property must be equal or greater than the current value of your prospective new home.
Per the California State Board of Equalization website: https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm
“In general, equal or lesser value means:
- 100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or
- 105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or
- 110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.”
The new property must be purchased or built within two years (before or after) of selling your original property. It also must be eligible for the Homeowners’ or Disabled Veterans’ Exemption.
Finally, the newly purchased home must be your primary residence. You can’t use Propositions 60 and 90 to purchase an investment property or vacation home.
What Do I Need to Qualify?
You or your spouse needs to be age 55 or older at the time of the sale of your original home. Your original home must also have been eligible for the Homeowners’ or Disabled Veterans’ Exemption. If you meet these requirements, then you may qualify for Propositions 60 and 90.
Make sure you visit the California State Board of Equalization website for even more information on the requirements and how to file.
Do I Need a Special Loan to Take Advantage of This Program?
No. This is a one-time special tax relief. You only need to file!
Whether you are thinking of making a change or just want more information on this special program, call The Roby Company at (858) 748-8002 [tel:8587488002] or email us [firstname.lastname@example.org] to discuss your situation and start planning your move!
* The Roby Company and its agents and brokers are not tax professionals. Please consult with your tax professional for more detailed information and how it will affect you individually.
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