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Frequently Asked Questions  

12 Reasons Why
Malibu is the "U.S. Riviera"

• Small town environment near major metropolis
• Casual beach lifestyle
• Hub of the entertainment world where deals are made on the beach
• Ability to obtain privacy behind gates on acreage
• Miles of riding and hiking trails for equestrians and hikers
• Solace in the mountains
• 27 miles of beauty along a coastline of varied beaches
• Surfer's Paradise
• Beach walker's paradise
• Varied contour of the land which creates an unparalleled beauty where "the mountains meet the beach"
• The independent spirit of the inhabitants
• An environment that lends itself to creativity

To Be Continued . . .

How much tax will I have to pay on the
gain on the sale of my home?

DISCLAIMER. Susan Monus and Coldwell Banker do not advise on any personal income tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional tax advice for personal income tax questions and assistance. Please contact a tax accountant for your specific situation because there may be many variables to consider.

In general, if you are single, you can exclude up to $250,000 of the gain on the sale of your home if all of the following are true:

• You meet the ownership test
• You meet the use test
• During the two year period ending on the date of the sale, you did not exclude gain from the sale of another home.

During the five year period ending on the date of the sale, you must have

• Owned the home for at least 2 years.
• Lived in the home as your main home for at least 2 years.

You may be able to exclude up to $500,000 of the gain on the sale of your main home if you are married and file a joint return and meet the requirements of special rules for joint returns. Please refer to your tax adviser for specifics.

The good news at the present time is that this process can be repeated if you have a gain every two years with the sale of your principal residence.

What type of Property Tax relief is available
if I am over 55?

Typically the property tax of a newly purchased or constructed residence is based on its current market value upon change of ownership. However, the provisions of Propositions 60 and 90 may result in substantial tax savings since it allows the property tax of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met. This can result in substantial savings.

What are the eligibility requirements
for Proposition 60/90?

• You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
• The replacement property must be your principal residence and must be eligible for the homeowners' exemption or disabled veterans' exemption.
• The replacement property must be of equal or lesser "current market value" than the original property.
• The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
• To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
• Your original property must have been eligible for the homeowners' or disabled veterans' exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.

Please consult your tax adviser for any other restrictions that may exist on this extraordinary benefit. For older people who have owned their principal residence for a very long time, there is a significant savings available if you meet all the criteria and want to scale down.

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