Are you ready to move on to a home more reflective of your present lifestyle? Prior to the passage of Proposition 19*, many homeowners were reluctant to sell their home that no longer suited their needs because of the insufferable property tax assessment they would bear. That limitation has now been lifted!
Effective April 1, 2021, an Owner of a primary residence aged 55+, or severely disabled or a victim of wildfire/natural disaster, may:
TRANSFER THE TAXABLE VALUE OF THEIR PRIMARY RESIDENCE TO A REPLACEMENT RESIDENCE ANYWHERE IN CALIFORNIA, provided they do so within two years of selling their primary residence.
PURCHASE A HOME OF GREATER VALUE WITHOUT INCURRING A SUBSTANTIAL INCREASE IN TAXABLE VALUE. For example, if a senior sold a home with an assessed value of $250,000 for $2 million and purchased a new home for $3 million, the new home's assessed value would be $1.25 million ($250,000 + the $1 million increase in home value). Blending the taxable value of the old home with the new, more expensive home results in a positive property tax savings for the homeowner.
- ….do so up to three times during their lifetime (one time for victims of wildfire/disaster).
This benefit may be the incentive you've been waiting for to progress to the next phase of your life. Coupled with our historic low interest rates, there could not be a more opportune time. Call me when you are ready to discuss selling your existing home and purchasing one more suitable to your present way of living.
*We advise obtaining guidance from attorneys specializing in Real Property Tax for details on taxation matters directly affecting your unique situation.