Palos Verdes Lifestyle - Norma Toering 310-493-8333

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Ready to Sell Your Los Angeles Luxury Home, But Worried About Taxes?

Charlemagne Int'l Properties can help you make a money-wise move when it's time to downsize.  310.493.8333
Charlemagne Int'l Properties can help you make a money-wise move when it's time to downsize. 310.493.8333

 

Not only is the task of selling your longtime primary residence somewhat overwhelming due to the sheer physicality of the task, downsizing seniors must also consider the potential property tax implications.  If you're remaining in Los Angeles County, or one of the cooperating counties, there is light at the end of the life-disrupting downsizing tunnel.  It's up to your accountant and estate attorney to help you with the IRS, but as your real estate broker I can assist you with the property tax break if you and your property qualify.

You may be eligible for the senior citizen's replacement dwelling benefit.  Yes, Propositions 60 and 90 allow seniors to keep their property taxes at the same rate they have paid for years.

If it's time to lose the stairs and move to a property that is senior-friendly we can help.
If it's time to go stairs-free contact Charlemagne Int'l Properties at 310.493.8333.

That's right, longevity counts on this one.  If you or your spouse who resides with you are age 55 or older, you may buy or construct a new home of equal or lesser value than your current home and transfer the base value to your new purchase.  The property tax demon can no longer hold you hostage in your cavernous home because you are reluctant to part with the owner-friendly annual property tax bill you enjoy due to Proposition 13.

 California property is reassessed upon sale.  The tax rate is approximately 1.25% of the purchase price when all assessments are added.  If you qualify you can take your old tax rate with you.  Naturally there are some stringent eligibility requirements.  Whether you're dreaming of a home by the water, a cabin in the woods or a condo in the sky, we can help you make that transition without too much wear and tear on body, mind and soul.

Home by Water Sign

Primary Requirements:

1.  You, or your spouse must have been at least 55 year of age when the original property was sold.

2.  Both the original home and the new purchase must be your principal residence.

3.  This is a one-time only benefit.

4.  The replacement property must be of equal or lesser "current market value" than the original property.

5.  Your original property must have been eligible for the Homeowner's or Disabled Veterans' Exemption.

6.  Time is a factor. The replacement property must be purchased or built within two-year (before or after) of the sale of the original property. If a claim is filed more than three years after purchase or completion of new construction, relief will be granted beginning with the calendar year in which the claim is filed.

There are several other requirements and only a few counties cooperate, so consult a professional before making a downsizing decision.  Making the right move will save you thousands of dollars over time.  With more funds available your downsizing experience will bring you--more freedom, more fun and more time to enjoy the next chapter of your life.

Here are some answers of frequently asked questions from the California Board of Equalization.

More Seller Tips from Norma!

Norma Toering Charlemagne Int'l Properties
(310) 493-8333

South Bay Los Angeles cities we sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes,  Redondo Beach, Hermosa Beach,  Manhattan Beach and luxury homes throughout the greater Los Angeles area.

 

Imagine how thrilled you will be to have a sale pending sign in front of your Palos Verdes Property.
Imagine how thrilled you will be to have a sale pending sign in front of your Palos Verdes or South Bay home!

Sell Smart, Buy Wise and Live Well

Norma Toering - Real Estate BrokerNorma Toering & Team
Broker-Owner - Charlemagne International Properties
310.493.8333 - Email Norma

 

 

 

 

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Based on information from the Association of REALTORS®/Multiple Listing as of the initial date of this article/blog publication and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.

Comments

Do I understand this right Norma Toering Broker for Palos Verdes and Beach Cities ?   If I were under 55, live in a mansion in LA, but sell and downsize to a cottage, it would be an advantage to still transfer my old tax bill from the mansion to my new home the cottage and pay the mansion's tax rate?  

Posted by Shanna Day Team Leader (UT & AZ), Keller Williams Realty (Keller Williams SLC (UT) and Keller Williams Realty EV (AZ)) over 3 years ago

GOOD POST.. do you know where i might get the list of counties? thanks

Posted by Mike Rock, Granite Bay Luxury New Construction...For Less (Complete Design) over 3 years ago

Shanna Day Mega Team Leader (UT & AZ) No, if under 55 years of age the tax rate is non-transferable. It's a perk for seniors only.

 

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 3 years ago

MIKE ROCK Google CA Proposition 60 and 90 and a list of the cooperating counties is available.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 3 years ago

Norma Toering Broker for Palos Verdes and Beach Cities - Great information for California property owners looking to downsize, but are worried about taxes. Prop 60 and Prop 90 are often over-looked, or forgotten about.  This is why sellers should call you - you're an agent that really knows the in's and out's of the business!

Posted by Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com, Tahoe Real Estate Agent Helping Buyers and Sellers (Coldwell Banker, Tahoe City, CA (530) 414-1260) over 3 years ago

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