ELIMINATE FEDERAL AND STATE CAPITAL GAINS FOR SENIORS WHO SELL THEIR HOMES

March 16, 2009

Are we going to live with Prop 13 in the current form or are there other possibilities? The current administration is talking about raising Federal capital gains taxes to 20%. When combined with California’s 9.3% comes to a total close to 30% depending on your tax bracket.

Does it make sense that on the same street in hundreds of California neighborhoods, one resident pays $1,500 in property taxes while the owner of an identical house pays $15,000, thanks to Prop 13? The $1,500 taxpayer owner can best be described as over 62. A high percentage own their home free and clear, especially super seniors over 70. The $1,500 taxpayer has a whole host of complex choices whether to sell and move on, especially super seniors over 70. They have very strong incentives to stay which limits the states ability to raise property taxes more than 2% per year. They are: Read the rest of this entry »