California Prop 60 and 90
This blog post just covers the basics, but we wanted to get the word out as much as possible since we think it's one of the best tips for seniors selling their homes. Many seniors in the Bay Area consider downsizing from house to townhouse and staying in their local area, but moving to a cooperating county under California Prop 60 and 90 can also be a great opportunity for keeping your nice Prop 13 tax basis.
The state has made nice provisions for home owners 55 years and older, as options for selling a home in California. A few things to keep in mind:
- Prop 60 concerns moving within your own county of your county is eligible.
- Prop 90 involves moving to a reciprocating county (contact your local county offices to inquire)
- Your new home must be used as a principal residence
- Your new home must be of equal or lesser current market value than the property you're selling.
- Owner of record of original property must be at least 55 years of age.
There are other rules too for California Prop 60 and 90 - If you're looking for Bay Area real estate agents who know the market and various good options for your situation, our home selling team would love to answer whatever questions you have. We can also help you with a list of cooperating counties at time of inquiry, as well.
Of course this doesn't help with capital gains, but over time keeping your current tax basis can add up bit by bit and makes for a nice financial boost in retirement years.
Written by Kelsey Lane, Kelsey Lane & Team Real Estate DRE #01390557