Spring cleaning tips for homes in Newport Beach, Costa Mesa & Coastal OC. Boost curb appeal & prep your home for sale this season!
Understanding Capital Gains Taxes in Real Estate Sales and Using the IRS Section 121 Exclusion (aka the Homeowners Exemption or Homeowners Exclusion) Saving $250,000 or $500,000 of Taxable Gains
IRS Section 121 allows a reduction of potential capital gains taxes by $250,000 for single filers and $500,000 for married filing jointly filers when certain tests are met for the sale of your primary residence.
Think Your Property Tax Bill is High? Check Out Orange County’s Biggest Bills!
Think Your Property Tax Bill is High? These OC Landowners Pay Millions!
Before you complain about your tax bill, consider this—Irvine Company alone pays $192 million in property taxes this year. Disney? $81.5 million.
The Top 20 taxpayers contribute nearly $500 million, funding schools, roads, and public safety. Yet, Orange County only gets 5 cents of every tax dollar, far less than LA (21 cents) and San Diego (12 cents).
“Without these contributions, many local agencies wouldn’t have the funds for public services,” says OC Treasurer Shari Freidenrich.
Want to see the biggest tax bills in OC? Read on.
1031 Exchanges and Vacant Properties: Can You Defer Taxes on an Empty Home?
Can a Vacant Property Qualify for a 1031 Exchange?
The IRS focuses on investment intent, not just rental income, to determine eligibility. Key factors include the original purpose of acquisition, tax treatment, marketing efforts, and whether the property was ever used personally. Court cases like Alderson v. Commissioner and Reesink v. Commissioner have ruled that properties held for appreciation—despite never being rented—can still qualify.
Read the full article for key legal precedents and expert guidance.
California Property Taxes: Second Installments Due By April 10, 2025
The deadline is fast approaching! If you own property in California, your second property tax installment is due by April 10, 2025. Missing this deadline could result in steep penalties—up to 10% of your tax bill plus additional fees. Don’t wait until the last minute—make sure your payment is postmarked or received online by 11:59 p.m. on April 10 to avoid unnecessary costs.
Not sure if you’ve received your bill? It’s your responsibility to check—the county won’t remind you! Visit www.octreasurer.com to confirm your balance and payment options.
Questions about property taxes, Proposition 19, or real estate matters? Lucas Real Estate is here to help. Contact us today at [email protected] or 949.478.1623.
UPDATE: March 7 2025 Executive Order Further Extends Price Gouging Protections
Governor Gavin Newsom’s Executive Order N-23-25, issued on March 7, 2025, extends rental price gouging protections in Los Angeles County until July 1, 2025. These protections cap rent increases at 10% and prohibit evictions aimed at re-listing properties at higher prices.
However, some properties are now exempt from HUD Fair Market Rent (FMR) calculations—specifically newly constructed units and high-value single-family homes (4+ bedrooms) in select Los Angeles ZIP codes. Importantly, these exemptions do NOT remove the 10% cap on rent increases and do NOT allow landlords to raise prices beyond prior rates if the property was rented or listed in the last year.
For landlords, property managers, and investors in Newport Beach, Costa Mesa, and beyond, these updates carry critical implications for leasing strategies, property valuations, and rental pricing. Orange County remains fully subject to price gouging laws, with no exemptions.
📖 Read our full article to understand how these changes impact your real estate business.
7 Steps to Prepare Your Home for the Spring Selling Season in Coastal Orange County
Spring is the perfect time to sell in Newport Beach, Costa Mesa, and Coastal Orange County! 🌸☀️ With buyers actively searching, making a few strategic upgrades can set your home apart. From boosting curb appeal and decluttering to staging for that perfect coastal vibe, these simple steps can help you sell faster and for top dollar. Thinking about listing your home this spring? Let’s chat—Lucas Real Estate is here to help you maximize your home’s value!
What Happens When a Tenant Moves Out Early? A Landlord’s Guide in California
What happens when a tenant moves out before their lease ends? In California, tenants remain responsible for unpaid rent and re-rental costs—but landlords must make reasonable efforts to find a replacement rather than simply charging the tenant for the full lease term. Under California Civil Code § 1951.2, landlords have a legal duty to mitigate damages by advertising the property, setting a fair market rent, and considering qualified replacement tenants. If a landlord rejects a viable tenant without good reason, the outgoing tenant’s liability may be reduced. A proactive approach can minimize downtime and financial loss for both parties.
Investing in a Rental Property in Coastal Orange County
Looking to build long-term wealth? Investing in a rental property in Newport Beach, Costa Mesa, or Coastal Orange County could be the smartest financial move you make! 🏡💰 Whether you opt for a steady, cash-flowing long-term rental or a high-income vacation rental, both strategies offer reliable income, tax benefits, and long-term equity growth. Want to explore the best investment opportunities? Let’s chat—Lucas Real Estate is here to guide you!
UPDATE: February 2025 Executive Order on Price Gouging Protections
On February 4, 2025, Governor Gavin Newsom issued Executive Order N-17-25, modifying California’s price gouging protections in response to the Los Angeles and Ventura County wildfires. This order expands price gouging restrictions to all rental housing, regardless of lease length, closing a loophole landlords previously used to avoid these rules. Additionally, it temporarily suspends price gouging restrictions for high-value, four-bedroom single-family homes in select high-rent ZIP codes until March 8, 2025. Notably, Orange County remains fully subject to HUD-based rental calculations where applicable. Understanding these updates is critical for landlords and property managers navigating rental pricing in Newport Beach, Costa Mesa, and beyond.
