What is the Over 55 Home Sale Exemption Program?
Are you a senior citizen planning to sell your home? If so, you may be eligible to take advantage of the Over 55 Home Sale Exemption program. This program was created to help seniors who are looking to downsize or relocate, but need some relief from the taxes associated with selling their primary residence.
How Does the Program Work?
The Over 55 Home Sale Exemption program is designed to give seniors a tax break when they sell their home. Under this program, any proceeds from the sale of a primary residence that is owned and occupied by a senior for at least one year before the sale is exempt from capital gains tax.
Who is Eligible?
In order to be eligible for the Over 55 Home Sale Exemption, you must meet the following criteria: you must be 55 years of age or older at the time of the sale, you must have owned and occupied the residence for at least one year prior to the sale, and you must use the proceeds from the sale for a qualifying purpose such as purchasing another primary residence or investing in a retirement account.
What are the Benefits?
The primary benefit of the Over 55 Home Sale Exemption is that it allows seniors to keep more of their hard-earned money when they sell their home. By avoiding capital gains tax, seniors can keep more of their proceeds and use it to finance a move or retirement. The program also allows seniors to avoid the hassle of filing and paying capital gains tax, which can be a lengthy and complicated process.
How Do I Apply?
In order to take advantage of the Over 55 Home Sale Exemption program, you must complete and submit a form to your local county assessor. This form must be submitted within six months of the sale of the home. After the form is submitted, the assessor will review the information and determine if you are eligible for the exemption.
Are There Any Other Requirements?
Yes, there are other requirements that must be met in order to qualify for the Over 55 Home Sale Exemption. You must be a resident of the state in which the home is located, and you must use the proceeds from the sale for a qualifying purpose. You must also prove that you have owned and occupied the residence for at least one year prior to the sale.
Conclusion
The Over 55 Home Sale Exemption program is a great way for seniors to save money when they sell their home. By avoiding capital gains tax, seniors are able to keep more of their proceeds and use it for retirement or a move. If you meet the eligibility requirements, be sure to take advantage of this program and keep more of your hard-earned money.