Archive for the 'Taxes' Category
Baby Boomer Tax Break
Filed Under categories: Finance, News You Can Use, Real Estate News, Taxes
posted by Raye Scott on July 3rd, 2007
Have you heard about Revenue and Taxation Code section 69.5?
Well, if you are at least 55 years of age living in a property eligible for this Homeowner’s Exemption or receiving the Disabled Veterans’ Exemption, you are going to want to read on. (You’ll thank me later) Basically, this law allows you to transfer your tax basis on your current residence to a replacement dwelling of equal or lesser value within the same county. This exemption can only be taken one time.
In general, equal or lesser value means that the fair market value of a replacement property on the date of purchase or completion of construction does not exceed 100 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property: 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 a replacement dwelling is purchased within the second year after the sale of the original property.