Carry Forward Assessed
a California homeowner aged 55 or older, you have a once-in-a-lifetime
right to sell your home and carry forward its current assessed value
to a replacement residence of equal or lesser value. To qualify
to carry forward the current assessed value:
need to own and occupy the home sold as well as the replacement
homes must be eligible for the homeowner's $7,000 property tax
or your spouse must be at least 55 years old or severely and permanently
disabled on the closing date of the sale of your old home;
need to purchase (or construct) a replacement home of equal or
lesser value than the home you sold;
replacement residence must be located:
in the same county as the property sold; or
another participating county; and
purchase (or construction) of the replacement home needs to close
(or construction completed) within two years before or after closing
the sale of your old home.
When your replacement home is not
within the same county as the home you sold, the county of your
replacement property needs to be a participating county which allows
the carry-forward assessment from your prior county. Currently participating
counties include Alameda, El Dorado, Los Angeles, Orange, Riverside,
San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne and
Ventura counties (subject to change).
Only one carry-forward assessment
exemption is allowed per married couple. For example, if a married
couple takes a carry-forward assessment exemption, and one spouse
later dies, the surviving spouse may not take a carry-forward assessment
exemption even if they later remarry.
When you and a co-owner both reside
in the home and are not married, you both individually qualify for
the carry-forward assessment. However, on the sale, only one of
you may use the exemption. Thus, the co-owner who does not apply
for the exemption is precluded from any future use of the assessment
carry-forward tax relief.
The only exception is when you become
severely and permanently disabled after receiving the carry-forward
tax relief due to your age. In this case, you may use the exemption
a second time under a separate claim due to the disability.