What You Dont Know About Property Tax Could Be Costing You Thousands of Dollars Each Year!

If you are over 55 and have owned your home for several years you may be eligible for property tax relief!

There are currently three propositions that affect eligibility for tax relief; Proposition 13, Proposition 60 and Proposition 90. Youll learn how each of these propositions are saving the over 55 home owners a significant amount of money.

Prop 13 The Golden Egg

Proposition 13 prohibits property tax increases until property ownership is changed. If you currently own your home you know how much money you are saving in light of the fact that housing values have sky rocketed over the last 5 years!

However, what happens when you sell your home Will you have to give up the advantage of the lower cost property tax you currently enjoy Not necessarily

Prop 60 Transferring Made Easy

Proposition 60 allows you to transfer your current property value to a new home within the same county you live in now. You must be replacing your primary residence and the cost of the new home must be equal or lesser value than your current home.

This allowance can be used once in your lifetime. For those of you who have a spouse that has taken advantage of this tax break previously, you will not be allowed as a couple to use this tax loophole again.

What happens if you move out of your current county

Prop 90 Distance No Longer an Issue

Prop. 90 allows a county to choose to accept or deny Prop. 13 and accept a grandfathered property value assessment when buying a new home. As of June 1, 2005, seven California counties honor Proposition 13; Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura.

Prop. 60 and 90 apply if you are trading down. (i.e. The value of your new home is less than the value of your old home.) However, the government being who they are, has stipulations.

* If you buy your new home first, then sell the old home, you must go down in price.

* If you sell the old home first, then buy the new home:

* In the first 365 days after the sale of your old home, you may go up 5% in the purchase price of your new home.

* If you buy your new home more than one year from the sale of your old home, but less than two years, you may go up 10%.

* You must file a claim with your county assessors office within three years of the acquisition or completion of construction of the replacement property.

* Claim forms are available at the Assessors public counter and in regional offices, or you may visit the State of California website, State Board of Equalization at: www.boe.ca.govproptaxesassessors.htm.

Some buyers may choose to pay the commissions outside of escrow to keep the cost of the purchase price down. Your lender will prove invaluable in helping you maximize your costsmortgage package to take full advantage of this incredible tax break.

Rosemarie Mandel has been providing outstanding lending service to her hundreds of clients for over 5 years. Her clients span the United States from coast to coast. Rosemarie may be reached by calling 818-444-4788, by visiting her website at http:www.innovativemortgagesolutions-sandiego.com, or by email at rosemarie@ims-sandiego.com. All Rights Reserved. This article may be reproduced in its entirely including contact information.

Taxation in the News

Commissioner for Taxation and Customs Union, Audit and Anti-Fraud - A Smart ...
From my last appearance in this committee, I recall your strong interest in taxation issues. I am here today to share with you my ambitions for the years to

Let's keep Alex Salmond on the ropes, not appease him
That this accolade would amount to the end of the United Kingdom as a unitary state, with a single taxation system, appears not to have occurred to Mr

The perfect society: A land without wealth?
Would the egalitarian consider taxation equitable if the "rich" surrender, say, 75-percent of their income to government? Hillary Clinton, Oregon voters and

KPMG International > Taxation of cross-border mergers and acquisi tions
Taxation of cross-border mergers and acquisitions Current laws and regulations applying to cross-border M&A, including different ways to structure a merger

Environmental taxation keeps falling - Eurostat
They also fell as a percentage of overall taxation. Lower energy use and energy taxes not keeping up with inflation have combined to produce this result,

Better tax structure needed for SF businesses
For decades, small businesses in San Francisco have argued that the city's flat 1.5 percent payroll tax hurts job creation and slows economic growth.

Millcreek School Board approves budget with tax increase
By DANA MASSING After three years without a tax increase, the Millcreek School Board voted in favor of one for 2010-11. The board on Monday approved an

Taxes

What is tax?

A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (for example, secessionist movements or revolutionary movements). Taxes could also be imposed by a subnational entity. Taxes consist of direct tax or indirect tax, and may be paid in money or as unpaid labour

Interesting articles

Implications of Income Tax Charge on Estate Planning

Your Affiliate Business and Taxes

10 Things Every Taxpayer Needs to Know About the Pension Law

Legitimate Home Based Businesses and The Tax Department

Tax Advantages of Incorporating a Business - Travel Expense Deductions

Tax Lien Certificates and Subsequent Tax Procedures

Implications of Income Tax Charge on Estate Planning

Investors Avoid These 5 Common Tax Mistakes

Tax Plaza

The Tax system explained!