Los Angeles’ so-called “Mansion Tax” isn’t just a L.A. problem—it’s a warning shot for property owners across Orange County. Branded as a luxury tax, Measure ULA has stalled high-value transactions, slashed property tax revenues, and deterred housing development. As similar ideas loom statewide, Newport Beach and Costa Mesa property owners, investors, and trustees need to stay informed—and protected.
Thinking of keeping a deceased parent’s home in their trust to “avoid” reassessment? Don’t do it. This common myth can lead to massive tax bills, penalties, title issues, and even trustee liability. At Lucas Real Estate Group, we help clients across Newport Beach, Costa Mesa, and Orange County navigate property transfers, Proposition 19, and trust administration — the right way.
The 2025 federal tax reform delivers major wins for homeowners, investors, and business owners — from increased SALT deductions and permanent mortgage interest deductions to restored bonus depreciation and preserved 1031 exchanges. But despite these changes, key homeowner benefits like the capital gains exclusion remain unchanged since 1997, fueling ongoing calls for reform. At Lucas Real Estate Group, we break down what this means for Newport Beach, Costa Mesa, and coastal Orange County property owners.
Can I Sell My House to My Child Below Fair Market Value?
Yes — and in fact, many families are doing exactly that using a strategy called a gift of equity. This powerful estate planning tool allows parents to sell a home to a child at a discounted price, gifting the difference — often with no immediate tax consequences. But there are critical rules to follow regarding IRS gift limits, capital gains, property tax reassessment under Prop 19, and proper loan structuring if financing is involved.
Whether you’re in Newport Beach, Costa Mesa, or anywhere in coastal Orange County, this guide breaks down everything you need to know — including real-world examples, IRS rules, and expert insights from Lucas Real Estate.
Explore a potential Prop 19 loophole using LLCs to preserve low property tax assessments in California. This detailed guide from Newport Beach-based Lucas Real Estate Group explains the Prop 19 workaround, risks of reassessment, and key legal strategies—including how to avoid triggering reassessment through careful entity structuring. Essential reading for families navigating generational real estate planning in high-value areas.
Navigating divorce is difficult enough—don’t let California Proposition 19 add to the confusion. Learn how property tax base transfers work under Prop 19 when divorcing spouses own a shared residence. Only one spouse can claim the tax benefit, but the claim form doesn’t ask about divorce—making it essential to plan ahead and document who gets to use it. Lucas Real Estate Group breaks down the rules, risks, and best practices to help you protect your financial future.
Think you can do a 1031 exchange with an LLC interest? Not so fast.
Many investors are surprised to learn that LLC membership interests are excluded from 1031 exchange eligibility under IRS rules. But with proper planning—like “drop and swap” strategies and other structuring techniques—you may still be able to defer taxes. In this article, we break down the risks, workarounds, and best practices for LLC-held real estate in high-value markets like Newport Beach.
If you own rental property in Newport Beach, Costa Mesa, or coastal Orange County—or if you’re a high-income earner looking for strategic tax savings—qualifying as a Real Estate Professional under IRS rules could unlock major benefits. From deducting real estate losses against your W-2 income to avoiding the 3.8% Medicare tax on rental profits, REP status can significantly reduce your tax liability. But strict documentation and time-based tests apply, and California doesn’t follow the same rules. Learn what qualifies, what doesn’t, and how to stay compliant in this essential guide.
Can you complete a 1031 exchange if you only own a limited partnership interest in real estate? Not directly—but strategic solutions like the “drop and swap” may provide a path forward. In this article, we explore the legal and tax complexities of navigating 1031 exchanges from within a partnership, with a focus on opportunities in high-value markets like Newport Beach.
When co-owners of real estate can’t agree on what to do with a property, a partition action may be the only option — but it’s rarely the best first step. In this article, we break down how partition actions work in California, explain recent changes under the Partition of Real Property Act, and share how Lucas Real Estate Group helps clients avoid costly litigation through strategic planning, buyouts, and trusted legal referrals.
Lucas Real Estate
2901 West Coast Highway Suite 200 | Newport Beach | California | 92663-4023
info@lucas-real-estate.com | 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.
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