If you are 55-years-old or older and selling your home, you might be able to transfer the taxable value of your current home to your next home to avoid paying higher taxes! This is thanks to Proposition 13 (People’s Initiative to Limit Property Taxation). See, people who own a home for many years usually pay much less in property tax than if they purchased the same house today. The change went into place decades ago after people were actually losing their homes because of uncontrolled tax increases from when their neighbors would sell their homes. So, sometimes even buying a even a smaller one would cost more in property taxes today than a home you’ve lived in for a long time. Some conditions apply to qualify for exclusions from reappraisal though. For example, this works if you are buying another home of equal or lesser value. Just contact your local county assessor to see if you qualify.
Plus, thanks to Propositions 58 and 193, if you have kids or grandchildren and you intend to transfer your current property to one of them, another advantage is afforded. Your child or grandchild might be able to pay lower taxes by continuing to pay the same property taxes you are currently paying! Obviously, there are cases where transferring the taxes isn’t beneficial. So, be sure to consult with an estate planning expert before claiming this exclusion.
Thinking of Purchasing a Home in Irvine, California?
If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for you. Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.
In the meantime, check out our: