District 5 Supervisor Dean Preston has gathered the 9,000 signatures necessary to place his Vacancy Tax legislation on the November ballot. This measure would apply to all real estate in buildings with three units or more, including condos. If it passes, we should not be surprised if it expands to include ALL private property in…
Taxes are too high in California, but that doesn’t mean they can’t go higher. A bill now pending in Sacramento would create a new agency in Los Angeles County with the authority to invent new taxes, including parcel taxes, gross receipts taxes on businesses, document transfer taxes and various kinds of bond debt that would…
When it comes to real estate, one of the last things investors want to consider is taxes. But unfortunately, it doesn’t matter what kind of investor you are; whenever there is profit, the IRS will come knocking for a piece of that profit. Being a real estate investor gives you a unique opportunity to save…
The Los Angeles City Council has unanimously approved adding a proposal to the November ballot which will dramatically increase transfer taxes in Los Angeles. Increase of Transfer Tax The proposed provision to the November ballot will increase the transfer tax on the sale of multimillion-dollar properties to allegedly help pay for housing local homeless people…
The home office deduction allows qualifying taxpayers to deduct certain home expenses on their tax return. With more people working from home, some taxpayers may be able to claim a home office deduction when they file their 2022 tax return next year. The following are some of the rules that relate to the home office deduction, and whether you…
As March ended this year, the Biden Administration issued a 250-page General Explanation of the administration’s fiscal 2023 revenue proposals, sometimes known as the “Green Book”. This is a very brief initial summary of the Green Book provisions which I believe would revolutionize, and have the greatest impact on, estate planning and real estate investing.…
Supervisor Dean Preston is currently collecting the 9,000 signatures required to place an “Empty Homes Tax” measure on the November ballot. Entitled The Home Tax Ordinance, it would levy a tax on units kept “deliberately vacant.” This four-year program is designed to “encourage” owners of some 4,000 rental units to return them back onto the…
In his federal budget for fiscal year 2023 that he unveiled earlier this month, President Biden proposed a huge new tax increase on America’s wealthiest citizens. The administration labeled it the “billionaires’ tax” and promised it would finally bring fairness to our tax code by making the richest Americans pay at least 20% of their wealth gains annually to…
More than 42 years ago, California voters overwhelmingly enacted Proposition 13 in response to out-of-control property taxes. Even with the passage of time, Prop. 13 remains very popular among citizens of all political stripes. Nonetheless, many politicians and bureaucrats hate Prop. 13 because it prevents them from taking unlimited cash from the taxpaying public. In…
Investment rental property, whether houses, apartments, vacant land, commercial buildings, shopping centers or warehouses, offer big tax incentives for investors who understand the special but complex tax rules and regulations related to these investments. Real Estate Professionals The best breaks go to “real estate professionals,” defined as those who spend at least 750 hours per…