How to Avoid the Tax Man
I enjoy your weekly real estate advice. My wife and I have owned our La Crescenta home for more than 25 years and our mortgage is nearly paid off. We are quite proud of our nest egg and hope to retire in the next couple of years. Our plan is to sell our home and pay cash for a new one in a less expensive community. We were considering Arizona until my accountant suggested that I check into California counties which will allow a transfer of our property tax base.
Can you provide any more information about this?
Congratulations on your nest egg! Major benefits of aging are the senior discounts. One of the biggest boons to Los Angeles seniors is the ability to transfer their property taxes from one home to another. Your accountant is referring to propositions 60 and 90 which in some instances allow you to transfer your current low property taxes to a new home.
Of course restrictions apply:
You or your spouse must be at least 55.
Your replacement home must be of equal or lesser value than your current home and the replacement must be your primary residence.
This is a onetime opportunity and you must buy (close escrow) or complete construction of your replacement home within two years of the sale of the transferring property.
Your LA County home can also be replaced for a home in these participating counties: Alameda, El Dorado, Orange, Riverside, San Diego, San Mateo, Santa Clara, and Ventura.
The above is a very basic synopsis aboutLA County’s Propositions 60 and 90; you can find more info here http://assessor lacounty.gov/extranet/guides/prop6090aspx or better yet,
consult with your tax professional.