Today I’m highlighting the topic of Props 60 and 90, which are tax initiatives designed for seniors age 55 and above.   

As they transition into senior status, many homeowners look to downsize into a smaller home, but would like to carry their tax base over to their next home. By filling out a Props 60 and 90 form and abiding by the rules set forth by California, you can do that very thing.  

There is one important caveat you’ll need to be mindful of. Say your current property is worth $500,000 and you decide to sell. Should you choose to take advantage of Props 60 and 90, the property you purchase next must be equal to or less than $500,000. 

“By filling out a Props 60 and 90 form and abiding by the rules set forth by California, you can carry your current tax base over when you decide to downsize your home.”

If you elect to buy a higher-priced property, you’ll be ineligible for Props 60 and 90, and you’ll be stuck with the tax base associated with your purchase price.

My team and I would be happy to walk you through the qualification process and inform you of all the particulars of Props 60 and 90. Please contact us for help with this or for any further questions you have. We hope to hear from you soon!