Selling a Home and 55+? You May Be Eligible for Propositions 60/90 - But What Are They?
In California home sellers who are 55 and over can benefit from Propositions 60 and 90.
These allow for transfer of property tax base on a primary residence within the same county (intracounty) in the case of Proposition 60 and from one Californian county to another (intercounty) with Proposition 90.
This means that your property tax won't be reappraised when you move home and you'll continue to pay the existing amount.
Homeowners who are 55 and over living in Santa Clara and San Mateo counties may be eligible for both schemes although, in the case of Proposition 90, it's very important that the county you are moving to also has a Proposition 90 ordinance. The nine other co-operating counties are Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Tuolumne and Ventura.
While there are too many rules to cover in this brief general information article, key finer points include the necessity for the seller of a home in trust to be the beneficial owner of the trust, not only the trustee.
The replacement property needs to be of equal or lesser market value than the original property (not always the sales price) and, in the case of co-owners, only one of the owners can receive 60/90 benefits.
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