Proposition 19’s intergenerational transfer cap has been adjusted to $1,044,586 as of February 16, 2025, offering only modest relief for families hoping to preserve their property tax basis. For high-value areas like Newport Beach and Coastal Orange County, this minor inflation adjustment does little to mitigate the harsh tax implications of Prop 19. Learn what this means for your family and how Lucas Real Estate Group can help you plan strategically.
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.
Under California Penal Code Section 396, rental price increases during a declared state of emergency are limited to 10%, with the base rent determined by prior rental history or fair market rent (FMR) as defined by HUD. If a property hasn’t been rented in the past year, the allowable base rent defaults to 160% of the HUD fair market rent. The choice between county-wide FMRs and Small Area FMRs (SAFMRs) depends on local market conditions, with SAFMRs providing more granular, ZIP code-specific data.
In Newport Beach and Coastal Orange County, it’s not uncommon for property owners to overlook transferring real estate into a trust before passing. A Heggstad petition can resolve this issue by allowing the property to be added to the trust without going through probate. Discover how Lucas Real Estate can assist you in securing your real property efficiently and effectively.
Navigating probate in Newport Beach and the Orange County coastal areas can be complex, especially in the luxury real estate market. Our guide simplifies the process, ensuring your high-end property transactions are smooth and legally sound. Learn how probate affects property sales, the necessary documentation, and the steps involved in estate administration. Whether you’re a homeowner, buyer, or real estate professional, understanding probate is crucial for seamless transactions in the upscale Newport Beach market.
Now available! The official Howard Jarvis Taxpayers Association legal petition to get the Repeal the Death Tax initiative on the November 2024 ballot is here!
This is an update to our earlier article on the 2016 implication of the Transfer on Death Deed in California. What is a Transfer on Death Deed Simply put, a Transfer on Death Deed (or “Revokable Transfer on Death Deed” or “TOD”) it is a deed, recorded on your property’s title, that allows for a … Continue Reading
Yes! Indeed, many owners elect to gift or partially gift their homes to their children now, for many reasons, including current favorable gift tax allowances / exemptions. A gift of equity is a remarkably easy way to allow your child to obtain a traditional loan without any down payment….
Effective until June 30, 2023, California is waiving the traditional $70 filing fee to form a California Limited Liability Company, or “LLC.” Even better – The annual minimum $800 tax to the California Franchise Tax Board is also waived for the first year.
Editorial Summary
California Proposition 19 is a massive property tax hike on the next generation of property owners. It wipes out the current Proposition 58 and Proposition 193 family transfer benefits, effective February 16, 2021. This is potentially the largest property tax increase in California history… but it will only impact the next generations; this is a new death tax and inheritance tax on real property owners’ heirs.
Lucas Real Estate
2901 West Coast Highway Suite 200 | Newport Beach | California | 92663-4023
[email protected] | 949.478.1623 office
Devin Lucas BRE No. 01912302 | Courtney Lucas BRE No. 02015514
Lucas Real Estate, a dynamic full-service residential real estate team led by Devin Lucas, REALTOR®, Real Estate Broker, and Real Estate Attorney, and Courtney Lucas, REALTOR® and CPA, offers unparalleled expertise in Newport Beach and surrounding areas.
Privacy Policy | Accessibility | Disclaimer | Newsletter | Social Media