The Replacement Residence Exclusion (Proposition 60) allows those 55 and over to transfer their present taxable value to a replacement residence. In many cases this can result in substantial tax savings, when homeowners acquired their homes when real estate values were well below current levels.
To qualify you must meet several tests: 1. The residence sold and the replacement residence must qualify as your principal residence under the tax laws. 2. Both properties must be located in Sonoma County 3. Transfer of your original residence must trigger reassessment of it. 4. The replacement property must be of equal or lesser value. (See exception below) 5. You can only use this exclusion one time.
There is a significant exception to the equal or lesser value rule, if you sell your residence before buying a replacement. In that case the replacement may be valued at up to 105% of the value of the sold residence if purchased within 1 year, and up to 110% if purchased within 2 years.
For more information follow this link to the Sonoma County Assessor’s website http://www.sonoma- county.org/Assessor/HTML_Documents/WaystoSave/R eplacementRes.htm
The market held steady in November, in terms of the number of months of inventory. After the typical seasonal slow down around the holidays, we’ll be watching closely after the first of the year for any emerging new direction.
Best Wishes for the New Year
Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man. ~Benjamin Franklin