A new initiative called Proposition 90 will help homeowners that are 55 years or older to carry over the base year value of their principal residence from one county to a newly bought household in another county. There are a few requirements that must be met, so read on to see if you qualify.
Notably, Prop. 90 lets homeowners move closer to their family, lifestyle centers, and medical services. This also gives the opportunity to downsize in order to save money on expenses and to get involved in different recreational activities.
Here are the requirements for qualifying:
– The owner of the home, or a spouse living with the homeowner, must have been 55 or older when the original property was sold.
– The property that will replace the current one must be a principal residence and be eligible for a homeowners’ exemption or a disable veterans’ exemption.
– The replacement property must equal to or less than the current market value of the original property.
– The new replacement property has to be purchased or built within 2 years (either before or after) of the sale of the original property.
Keep in mind that the Proposition 90 option can only be used one time. After this tax relief is received and filed, both the primary homeowner and the spouse residing with them cannot file for this again.
If you would like more information about Proposition 90, and you would like to work with a true expert, then reach out to me, Kristi Muñoz of Lawyers Title by calling (909) 841-7645.