My thanks go out to Shelley Middleton for researching and sharing of this information
Mr. X lives in LA County.
- He sells residential property, buys residential property in OC for less than the selling price of his LA County residence.
- He expands and remodels his new OC property.
- The cost of the property plus the cost of the remodeling is still less than the selling price of his LA County home.
- He is entitled to the benefits of prop 13 and prop 90.
- He must be 55+; purchase the replacement property within two yrs of selling the original property; notify the Assessor within 30 days of completion of the purchase and construction.
The benefit is that if the cost for the property plus the remodeling is less than the selling price of his new OC property, he may keep this Proposition 13 tax advantage.
So, for example:
- Fred sells his property in L.A. for $300,000
- He buys property in Leisure World for $100,000
- Remodels for a cost of $150,000
- He files the required form to the County Assessor w/i 30 days of completion of the project.
- He is entitled to keep his LA County Prop 13 benefit.
This link will take you to the required filing form and also gives a full explanation of the process: