Deposit Only Stamps

Is Us Postage Stamps low "Prop 13" property tax basis stopping you from selling your home? Do you know that there is a way to transfer and keep your low tax basis even after selling and moving?

Here are the basics of how to claim a "Prop 60" property tax benefit:

You need to be over 55 years of age when you sell. For couples as well as individuals, this is generally a "once in a lifetime" claim.

You need to buy a home of equal or lesser value than the one you sell. "Moving on up" will not work since there is no partial benefit available. Keep in mind that the comparison is of "value to value" not "selling price to purchase price". Suspicious transactions will be investigated. Interestingly, if you wait more than a year to buy, the replacement can be slightly more than equal value. This is due to an inflation formula that allows you to buy for more if you wait more than twelve months for your replacement property.

Your new home must be in the same county as that of your previous home or in one of the counties that A Suitable Place To Advertise My Stamp Collection For Sale inter-county transfers. For example, you could sell in Riverside County and buy in San Diego County and still get the benefit. However, the Looney Tunes Stamp Collecting transaction of selling south and moving north will not work since Riverside does not approve inter-county transfers. Other counties besides San Diego who have allowed this are Alameda, Los Angeles, Orange, Ventura, San Mateo and Santa Clara.

You must buy within two years of selling. Even if building a new home, you will need to move in within two years of selling your prior home.

You must file an application within three years of buying your new home. It is not too late if you bought and sold a few years ago as long as you qualify and apply in time.

These rules are complicated and you should contact the assessor's office of the county you are moving into or obtain other professional help if this is in your plans. Self Inking Stamp assessor's office can provide all the forms you need.

It is easy to confuse these rules with those relating to the capital gains exclusions on home sales, which provide an income tax benefit in the year of sale. In contrast, the above rules provide a property tax break, which can stretch for many years.

Jim Vander Spek is a CPA in the firm Vander Spek & Corsello, CPAS with offices in Escondido, CA. vanderspekcpas / vanderspekcpas /