Are you 55 or older and live and own real estate in Pasadena, CA or Los Angeles County*?
If so, you can save thousands of dollars each year in your home property taxes.
How? Proposition 60/90!
What is it? How does it work?
This proposition was passed to provide tax relief to senior citizens who sell their existing home and purchase a replacement residence worth the same or less than the original.
In essence, if you are ready to sell your home and would like to down size into something smaller, maybe a condo or just a less expensive house, this proposition will carry over your current assessed real estate tax value.
Your existing home is worth $750,000.
You bought it for $200,000.
You are probably paying somewhere around $2,500 a year in Real Estate Taxes.
NOW, you are ready to downsize and are looking to buy a home for about $600,000. Normally, your real estate taxes will be calculated based on the purchase price of $600,000. Real Estate property taxes run about 1.2% of the sales price in Los Angeles county. This would mean that your taxes would now be about $7,200. OUCH!!!
This proposition allows you to carry over your existing tax base of $2,500. Saving you almost $5,000 each year!
There are certain criteria that you must meet:
- The seller of the original residence, or spouse who resides with the seller, must be at least 55 years of age at the time of the sale AND¦
- The replacement home must be of EQUAL or LESS value than the home sol, AND
- The replacement home must be either in the same county or another participating county.
That is all!!!
*The following counties participate in this program: Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura.
This is as simple as filling out a form. BUT, it has to be done within a certain window of time.
Please do not hesitate to contact me for further information on this proposition or with any real estate related question.
Please take advantage of this wonderful opportunity! Do NOT throw your money away!