If you’re a 55+ homeowner and are thinking about downsizing, you will most probably be able to take advantage of Propositions 60/90 which offer substantial tax advantages for Redondo Beach & South Bay seniors. California Props 60/90 may benefit those senior homeowners who want to move to a smaller house or one of the South Bay senior condos.
Below is a quick summary of Propositions 60/90 as well as quick links to more information, if needed.
Propositions 60/90 are constitutional initiatives passed by California voters. They provide property tax relief by preventing reassessment, when a senior citizen sells her/his existing residence and purchases or constructs a replacement residence worth the same or less than the original. This may result in substantial tax savings.
In general, “equal or lesser values” means that the fair market value of a replacement property on the date of purchase or completion of construction does not exceed 100 percent market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold; 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property; 110 percent of market value of the original property as of its date of sale if the replacement dwelling is purchased within the second year after the sale of the original property.
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.
If you need more information, please contact me at 310.918.5027. I’ll be glad to help!