Have Basis, Will Travel

A client of ours recently took advantage of Prop 60 to carry his old property tax basis over to his new home. In brief, we listed his house in Mill Valley in 2006. It sold for over $1,000,000. His tax basis, however, was calculated from when he bought the house for $150,000 in 1985. He wanted to buy a new condo and bring his old tax basis forward. With some nifty and nimble work, we were able to close on his new home within three weeks, exactly two years to the day after we closed on his old one. Two years is exactly how long homeowners over 55 years of age have before losing their Prop 60 exemption. The result? Our client will save over $10,000 a year in property taxes for as long as he owns his new condo. That makes retirement far more realistic for many.

Want to know more about Prop 60 or its sister law, Prop 90? There are permanent links on the right side of this page. Or just click here.