Downsize AND Keep Your Current Property Taxes!

Last year I sold my big home on the hill- the one with the pool, the view, the splashy kitchen and the endless stairs and moved to a lovely one story ranch with a teensy tiny yard.

The property tax on my old diggs was sweet and I was prepared for property tax SHOCK with this new one.

And then I realized we are old.

Ok, old is bit dramatic, but we were “55 and over” and this meant we qualified for Proposition 60 and Proposition 90.  This allows a person, 55 years of age or older, a one time transfer of their current property tax rate to a replacement home of equal or lesser value within participating counties.

Before we go any further, it is important that you click on this link to the Prop 60/90 information page at the California State Board of Equalization and verify your situation to the facts listed. I’d hate for you to get the facts incorrect!

This means we lowered the monthly cost of our new home by over $600.

This is NOT chump change!

The reasons behind this tax law are sound. Because of Proposition 13 longtime homeowners have significantly lower taxes than a new homeowner. Prop. 60/90 makes it feasible for that homeowner to downsize, releasing the large home for sale to a new buyer who will pay a larger property tax bill.

There are, of course, rules and caveats.

  1. Either you or your spouse must be “of age”.
  2. The replacement home must be your principal residence
  3. The replacement home must be of “equal or lesser value” to your current residence.
  4. The replacement home must be in participating county
    1. Alameda, Orange, San Diego, Tuolumne, El Dorado *, Riverside, San Mateo, Ventura, Los Angeles, San Bernardino, Santa Clara

** On December 12, 2017, the El Dorado County Board of Supervisors approved a rescission of their ordinance, which will now expire on November 7, 2018.

There are other rules, please check the website for complete information.

We almost missed out!!

I don’t see myself as an “old” person, grey hair notwithstanding. When we sold our big house we were just motivated to simplify our lives and get rid of those darn stairs. It was pure luck that we sold closed escrow just days after my husbands 55th birthday!

It was pure luck, again, that we purchased our replacement home a few months shy of the two-year deadline, at a price within the guidelines.

We didn’t even realize what we had done until halfway through our home purchase escrow. Boy, that was a good day.

Don’t think of this as a seniors benefit.

If you do you might miss out like we almost did. Think of this as simplifying your life so you can afford to go on more adventures!

We can help you plan

Boy, there is no lesson learned like personal life lessons. If you are thinking about making a change to your lifestyle give me a call. Even if you are not sure when you might make that move, a little strategy session now can save you big money in the long run!

Help Me Simplify!

Deciding to simplify your home life is a lot of things- but it isn't simple. We promise to listen and suggest ways you can clarify what you want to do. We promise no pressure, no "sales".

 

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