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• Income Taxes <br />Relocation Tax Consequences <br />In general, relocation payments are not considered income for tax <br />purposes. Benefit payments are paid under Title 24 of the Code of <br />Federal Regulation and Chapter 16 of the California Government <br />Code. If certain requirement are met, such payments will not be <br />considered as income for the purposes of income tax and public <br />assistance programs. In any case, please check with either your <br />Relocation Agent or a qualified tax consultant if you have specific <br />questions. <br />For property owners who are displacee by government action, the <br />State of California has created provisions to ensure that the lower <br />real estate assessment guaranteed to property owners through <br />Proposition 13 will be maintained for the comparable replacement <br />property. In June 1982, the State electorate approved transfer of the <br />assessment valuation of the former dwelling to the replacement <br />dwelling, with certain restrictions. County of Los Angeles Assessor's <br />Office applications for this purpose are available upon request <br />through your relocation representative. What this means is that if <br />any public agency buys your property under the Eminent Domain <br />process, you can carry your current tax basis with you when you <br />purchase a replacement property, as long as the replacement <br />doesn't exceed 120% of the purchase price the public agency pays <br />you for your property. <br />23 <br />55B -115 <br />