Those seeking to avail themselves of the benefits of Proposition 60 or 90 can benefit from an attorney as both the real estate broker and title company contractually disclaim any responsibility for all legal or tax advice. No assistance or guidance will be provided by these transacting intermediaries.
Under Califonria real property tax rules, the longer you hold your real estate, the more valuable your tax base becomes (assuming the fair market value grows faster than the 2% property tax increase cap).
Pursuant to Proposition 60, a homeowner can sell his or her primary residence and purchase a new residence of equal or lesser value, within the same county, and keep the pre-existing lower tax base.
Proposition 90, allows the residential property seller to transpose his or her lower tax base to a newly purchased residence in another county. Only a handful of counties allow for Proposition 90 transfers.
In order to qualify for either Proposition 60 or 90, one has to be age 55 or older. There are additional factors and complications when multiple co-owners are involved.
Proposition 60 an 90 allow seller to have his or her cake an eat it too. Downsize and keep your lower tax base, while monetizing equity, a substantial portion often tax free.
For more information or inquiries you can contact the Law Offices of Hanlen J. Chang.