Add Propositions 110, 58 and 193 to your arsenal
You will likely get the most traction with your senior clients in the real estate category of strategies by bundling downsizing, transferring your tax base with Prop 60 & 90, buy more home with Reverse Purchase and elements of senior placement. while you want to maximize your value proposition in these areas in you marketing, daily conversations and partner networking activities, there are three propositions not leveraged by most agents that when added to your arsenal will give you a competitive edge over other agents. Add the following to your knowledge base and share with your clients whenever appropriate:
Proposition 110:
Proposition 110 provides property tax relief for severely and permanently disabled claimants when they sell an existing home and buy or build another. It allows the transfer of the base-year value of their existing home, which in many cases is extremely low due to Proposition 13, to a newly purchased or constructed home within select counties in the State of California. In addition, the initia-tive also provides relief for modifications that make a home more accessible for a severely disabled person.
For an overview click here.
The key point to remember is a homeowner you encounter can move to another home - even if down the street - and carry along their Prop 13 tax base if they meet the definition as a disabled person.
Proposition 58:
The transfer of real property between parents and children may be excluded from reappraisal for property tax purposes. Your client must file a claim to determine eligibility.
The Basics
- - Real estate that is transferred from parent(s) to child(ren), or from child(ren) to parent(s) may be excluded from reassessment.
- - The established Prop. 13 taxable value is not affected by the transfer
- - Exclusion is not automatic; there must be a timely filed claim with the Assessor's Office
- - The new owner's taxes are calculated on the established Prop.13 factored value, instead of the current market value when the property is acquired.
- - $1 million limit (taxable value) on transfers of non-principal residence property
- - No dollar limitation on the original owner's principal residence
- - Transfers between legal entities (i.e., corporations, partnerships) that are owned by parents or children do not qualify
For more information click here.
Proposition 193
The transfer of real property from grandparents to grandchildren may be excluded from reappraisal for property tax purposes. Your client must file a claim to determine eligibility
Grandparent-Grandchild Transfers (R&T Section 63.1)
The Basics
- - Real estate that is transferred from grandparent(s) to their grandchild(ren) may be excluded from reassessment
- - Exclusion is not automatic; there must be a timely filed claim with the Assessor's Office
- - Parents of the grandchild must be deceased as of the date of transfer
- - The established Prop. 13 taxable value is not affected by the transfer
- - Taxes are calculated on the established Prop.13 factored value
- - $1 million limit (taxable value) on transfers of non-principal residence property
- - No dollar limitation on grandparent's principal residence
- - Transfers directly between legal entities (i.e., corporations, partnerships) that are owned by grandparents do not qualify
For more information click here.
