Empire Realty are experts in helping Seniors identify the best possible way to prioritize the utilization of their assetts in an effort to maximize our client's quality of life while meeting the long term goals of the client. Below you will find some programs and strategies that may be utilized to meet your goals and maintain your quality of life.
INCOME TAX PROGRAMS
CAPITAL GAINS TAX BREAK A BOON FOR HOME OWNERS
When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.
But when the Taxpayer Relief Act of 1997 became law, the home-sale tax burden eased for millions of residential taxpayers. The rollover or once-in-a-lifetime options were replaced with the current per-sale exclusion amounts.
It's your gain, or profit, that determines the size or lack of a tax bill. In fact, you can sell your house for $1 million and still not owe Uncle Sam as long as the profit portion was not more than $250,000 or $500,000, depending on your filing status. If you can exclude all the gain, then you owe no taxes.
For more details go to Capital gains tax break a boon for owners or the IRS Main Home Sales FAQ
PROPERTY TAX SAVINGS PROGRAMS FOR HOMEOWNERS
APPRAISAL EXCLUSION FOR SENIORS - Senior citizens 55 years of age (in the case of married couples, only one spouse must be 55 years or older) can buy a residence and transfer their current assessed value to the new home if the new residence is of equal or lesser market value. This prevents a tax increase due to reappraisal of the new home. Both sale and replacement residence must be in the same County.
PARENT TO CHILD EXCLUSION - The transfer of the principal place of residence and /or the first $1,000,000 of other real property between parents and children can be excluded from reassessment if a proper application is filed. This will exclude the parent to child transfer (or vice versa) from being reassessed. This can also apply for GRANDPARENT TO GRANDCHILD transfers provided the middle parents are deceased.
PROPERTY TAX ASSISTANCE - Provides a prorated reimbursement for property taxes paid based on income. You must be either blind, disabled or 62 years of age or older, with a total household income of $37,676 or less. Call the State Franchise Tax Board (toll free) at (800) 852-5711. Does not create a lien, and will never have to be paid back.
PROPERTY TAX POSTPONEMENT - If you are blind, disabled or 62 years of age or older, with an annual income of $24,000 or less, you may apply for a postponement for all or part of the property taxes on your home or manufactured home. This deferred payment is a lien on the property and becomes due upon sale, change of residence or death. Call (toll free) at 800-952-5661.
REVERSE MORTGAGES - Whether seeking money to finance a home improvement, pay off a current mortgage, supplement their retirement income, or pay for healthcare expenses, many older Americans are turning to "reverse" mortgages. They allow older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills.
In a "regular" mortgage, you make monthly payments to the lender. But in a "reverse" mortgage, you receive money from the lender and generally don't have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer live there as your principal residence. Reverse mortgages can help homeowners who are house-rich but cash-poor stay in their homes and still meet their financial obligations.
To qualify for most reverse mortgages, you must be at least 62 and live in your home. The proceeds of a reverse mortgage (without other features, like an annuity) are generally tax-free, and many reverse mortgages have no income restrictions.
ADDITIONAL HELP FOR SENIORS - Visit the California Senior Legal HotLine or call (800) 222-1753 for more information.
Have some questions? Contact us at 909-579-6611 or drop us a line and we will be happy to assist you. Contact Us