A client of mine recently came to me about her mom—her mom is getting older, and since she has a big home, she wants her to downsize to something smaller to help make life easier.
The challenge is that her mom doesn’t want to downsize because she fears that she’ll have to pay more in property taxes. Her mom bought her house a long time ago, so she has very low property taxes on her current house.
If you’re in a similar situation, I have good news for you: Propositions 60 and 90 can both help you. Under these propositions, if the home you’re selling is your principle residence and if you or your spouse is aged 55 or older, you are eligible to transfer your property taxes to a new home. In other words, you can buy another property of equal or lesser value within two years of selling your home and transfer your tax base over to that new home.
“In other words, you can buy another property of equal or lesser value within two years of selling your home and transfer your tax base over to that new home.”
Now, if you’re looking to move from, say, LA County to somewhere outside the county, you may or may not be able to do that. Proposition 90 allows for you to transfer from one county to another, but not all counties are eligible, so it’s important for you to make sure.
If you’d like more information or are curious if these propositions apply to your situation, click here.
Otherwise, if you’d like to hear more information from me about transferring your tax base and whether or not it would be applicable to your situation, feel free to reach out to me. We’re never too busy to help answer your questions.