Do seniors get a tax break on their real estate?
July 29, 2008
Date: Tue, Jul 01, 2008
I am 65 years old and I am on the deed along with my daughter and son-in-law. I have heard that seniors can get a break on their real estate taxes. Is this true, and will I be eligible since I am not the only person on the deed?
Date: Thu, Jul 03, 2008
First, I am assuming you live in California. I suggest that you contact the county assessor's office in your county for help about the details if you decide to proceed.
The Franchise Tax Board provides a Homeowner Assistance Program to qualified homeowners who are age 62 or older on December 31. You must own and live in your home, but you aren't required to be the only owner. For 2007, the maximum household income (including your social security and the earnings of your daughter and son-in-law) is $44,096. The maximum assistance payment you can receive is $472.60.
There is also a property tax postponement program. This is a loan for property tax payments from the State of California. The loan plus interest is repaid to the state at your death or when the property is sold. You must be age 62 or older, have at least 20% equity interest in the residence and have a total household income of $33,993 or less.
In order for your family to live in California, it seems likely to me that your household income will exceed the limits, so I'm not going further in this explanation.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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