Don’t Make My $1400 Mistake 😳
Recently I was helping a buyer client sort out her supplemental property tax obligations after she and her husband purchased their gorgeous Westchester home.
During my research, I started bumping into a few articles talking about a personal tax exemption I wasn’t aware of. Find a couple of articles here, here and here.
Let me back up a step here and tell you that all property in California is subject to taxation unless exempt. These property taxes support county services like law enforcement, fire protection, education parks & recreation and other services. You can find a great overview of our property tax rules here.
The only exemptions I was aware of were general exemptions for educational, charitable, religious and government organizations. I knew about the Homestead Exemption, but that is automatically applied to California homes and only comes into play when creditors want to take your property.
This mystery personal exemption I discovered required an application.
As I started reading more about the personal exemption, I thought surely my very sophisticated real estate agent must have told me about the exemption and I’ve just forgotten over the 20 years I’ve owned my personal residence, so I dug out my most recent tax bill. Sadly, I found a big goose egg on the exemption line item.
Are we talking about a lot of money? No. The exemption is worth about $70 (1% of $7,000), but if you're me, didn't know about this exemption and owned your property 20 years, you're out $1400. That number is a little more attention-getting. 😳
I'm not going to beat myself up too bad. It turns out 1 in 3 homeowners in LA County hasn’t claimed the exemption, but that stops now. I'm on a mission to shine a light on this "secret" exemption and I need your help! First, I want to make it super easy for you to submit your own application and get your own $70 tax break. Once you apply, the exemption should appear on your tax bill every year after.
Second, I need your help spreading the word!
But first, let's get you your own $70. Get the form here (click on the blue button on that page) and look at how I filled mine out here. I’m also providing a copy of my tax bill to show you (1) where to find your parcel number; (2) how to fill out your name if you hold your property in trust; and (3) how to figure out if you previously applied for the exemption.
The paperwork will take you literally minutes to fill out, especially with my form to follow. Honestly, the most time-consuming part of this project will be remembering where you tucked your tax bill for safekeeping.
To get the whole $70 for the year, make sure your paperwork is postmarked by Monday, February 15th. If you miss that cut-off, you have until December 10th to submit and still get 80% of the exemption. You’ll get all of it the following year. But don’t be like me and wait 20 years. 😁
Once you fill out your paperwork, tell 5 friends about this exemption and tell them to tell 5 friends! Share my video and/or my blog post on your social networks and let's all go get our $70! ✔💰💪
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This post is part of our Edge Series, content designed to give an edge to real estate buyers and sellers in Silicon Beach. Read more about our full Buyer's Edge program here and our Seller's Edge program here. Want help buying or selling real estate in Silicon Beach? Contact us, grab time on our calendar or read more Buyer Edge articles here and Seller Edge articles here. Need help beyond Silicon Beach? Reach out and let us help you find a high caliber agent with hyperlocal expertise in that area.