Orange County Real Estate Thoughts- Prop 60/90 The benefit to the 55 and older clientele
by Tony Leocadio
on Sunday, September 29th, 2013 at 12:24pm.
Proposition 60 / 90 allows homeowners to transfer their current property tax on their current residence and buy a replacement residence and pay the same adjusted property tax. This results in significant tax savings.
How does this work? The assessor transfers factored base value of the original residence to the replacement residence of equal or lessor value. Prop 60 requires that both the original and replacement homes be within thesame county. Prop. 90 broadens the move within the 7 counties mentioned below. You bought your 3 bedroom, 2 bathroom home in 1995 at $500,000 and today it is assessed at $1,000,000. Within the guidelines, you can transfer your old property tax to a beach-front home in San Diego.
Eligibility Guidelines: Prop 60/90 includes: Single Family Residence, Condos, PUDs Mobile Homes2. You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold3. The replacement property must be your principal residence and must be eligible for the homeowners' exemption. 4. The replacement property must be of equal or lesser "current market value" than the original property. The "equal or lesser" test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. 5. Replacement property can be newly constructed within 2 years (before or after) of the sale of the original property. 6. This is a one time filling. Prop. 60 / 90 cannot be granted if the claimant, or spouse was granted relief in the past. Prop 60 Inter-county transfer: Move from within the same county Prop 90 8 counties to choose from: San Diego, San Mateo, Orange County, Alameda, Santa Clara, Ventura, Los Angeles and as of September 2013 Riverside County has came back to the program!