A professional real estate marketing graphic featuring a high-end home in the background with the centered text: “Can I Sell My House To My Child Below Fair Market Value? / Can I Do A Gift Of Equity?” The Lucas Real Estate Group logo is displayed prominently and untouched, maintaining a transparent background. The overall design is clean, elegant, and suitable for upscale branding on social media and websites.

Can I Sell My House To My Child (Or Anyone) Below Fair Market Value? / Can I Do A Gift Of Equity?

  • May 25, 2025
  • devinlucas

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.

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Can You Still Avoid Reassessment After Prop 19? Exploring the “Prop 19 LLC Workaround”

  • May 23, 2025
  • devinlucas

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.

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Using California Proposition 19 in Divorce: Who Gets the Property Tax Transfer?

  • May 23, 2025
  • devinlucas

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.

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Can You 1031 Exchange Out of an LLC That Owns Real Estate? Not Directly — But There Are Workarounds

  • May 22, 2025
  • devinlucas

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.

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Real Estate Professional Tax Status: Maximize Tax Benefits in Newport Beach & Orange County

  • May 22, 2025
  • devinlucas

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.

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Can You 1031 Exchange Out of a Limited Partnership That Owns Real Estate? Not Directly — But There Are Workarounds

  • May 16, 2025
  • devinlucas

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.

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Partition Actions in California: What You Need to Know (and How to Avoid Them)

  • May 13, 2025
  • devinlucas

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.

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Ban on Predatory Real Estate Offers Related to LA Fires Extended Through July 1

  • May 9, 2025
  • devinlucas

Ban on Predatory Real Estate Offers Extended
Governor Newsom has extended through July 1, 2025 the executive order prohibiting unsolicited, undervalued real estate offers to homeowners in firestorm-affected Los Angeles ZIP codes. This crucial protection targets predatory investor behavior aimed at vulnerable property owners still recovering from disaster.

While this new order applies to property sales, it’s important to note that rental price caps and eviction protections remain in effect under earlier executive actions.

📖 Read our full article to learn how these protections impact real estate professionals, landlords, and property owners throughout Southern California.

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California Homestead Exemption: Protecting Your Home Equity in Newport Beach and Coastal Orange County

  • May 6, 2025
  • devinlucas

California’s homestead exemption—recently expanded and indexed for inflation—offers powerful legal protections for homeowners, especially in high-value areas like Newport Beach and Eastside Costa Mesa. In this article, the Lucas Real Estate Group breaks down the history of the homestead exemption, recent legal updates, and how to use it effectively as part of your real estate or estate planning strategy.

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Proposition 19 Update (2025): Intergenerational Transfer Cap Rises to $1,044,586

  • April 30, 2025
  • devinlucas

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.