Prop 60 and 90

Many seniors ask me about Prop 60 and prop 90. I always recommend talking to your CPA but here is a rough explanation:

7 COUNTIES WHICH ACCEPT PROP 90 (Current as of 6/1/2005)Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program.]
Props 60 and 90 apply if you "trade down" (i.e. the new home costs less than the sales price of the old home).
> If you buy New Home 1st; then sell the Old Home, you must go down in price.
> If you sell the Old Home1st; then buy the New Home:
In 1st 365 days after the sale of Old Home, you may go up 5% in the purchase price of New Home.
If you buy New Home more than 1 year from the sale of Old Home, but less than 2 years, you may go up 10%.