Prop 19 inflation adjustment info graphic with picture of house

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.

alarm clock and post it note infographic with "reminder" Attention California LLC Owners: Two Key Tax Reminders You Don’t Want to Miss

Attention California LLC Owners: Two Key Tax Reminders You Don’t Want to Miss – 1) Annual $800 Minimum Fee, and 2) Form 568 – Due April 15th

  • April 4, 2025
  • devinlucas

If you own a California LLC — even one with no income or used solely to hold real estate — you’re still required to file Form 568 and pay the $800 minimum annual franchise tax. This blog breaks down the two most critical filing requirements for LLC owners, especially those using an LLC for privacy, rental properties, or estate planning purposes. Don’t risk penalties or suspension — find out what’s due, when, and how to stay compliant.

Think Your Property Tax Bill is High? Check Out Orange County’s Biggest Bills!

  • March 12, 2025
  • devinlucas

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.

info graphic with photo of a home being swapped for another, with text "1031 exchanges: can you defer taxes on an empty home"

1031 Exchanges and Vacant Properties: Can You Defer Taxes on an Empty Home?

  • March 12, 2025
  • devinlucas

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.

piggy bank with text reminder that property taxes due April 10, 2025

California Property Taxes: Second Installments Due By April 10, 2025  

  • March 11, 2025
  • devinlucas

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.

IRS building outside

2025 IRS Gift and Estate Tax Limits Reach Historic Highs: $13,990,000 Lifetime Exclusion and $19,000 Annual Gift Exclusion – Changes Loom in 2026

  • January 12, 2025
  • devinlucas

2025 IRS Gift and Estate Tax Limits Reach Historic Highs

The IRS has raised the lifetime gift and estate tax exclusion to a record-breaking $13,990,000 per person for 2025, with the annual gift exclusion increasing to $19,000 per recipient. These high thresholds offer a unique opportunity for substantial tax-free gifting and estate planning, but they are set to revert to much lower levels in 2026 unless Congress acts. Learn how to maximize these benefits while they last, especially if you own high-value real estate in Newport Beach, Costa Mesa, or the surrounding areas.

2025 Capital Gains Tax Guide: Key Insights for Real Estate Sellers in Coastal Orange County

  • January 8, 2025
  • devinlucas

Capital Gains Tax Rates for 2025: What Home Sellers Need to Know

Planning to sell your home in Newport Beach, Costa Mesa, or other high-value areas in 2025? Stay informed about the updated capital gains tax rates. For 2025, single filers can enjoy a 0% rate for gains up to $48,350, with higher rates applying to gains above this threshold. Married couples filing jointly benefit from a 0% rate up to $96,700. Learn how the IRS Section 121 Exclusion can save you $250,000 to $500,000 in taxable gains. Don’t overlook additional taxes like California’s income tax, which can push your total tax rate to 37.1%. Contact Lucas Real Estate for expert guidance on real estate sales and tax implications.

Renting Out Rooms in Your Home? You Could Still Qualify for the IRS Section 121 Deduction When You Sell

  • October 6, 2024
  • devinlucas

If you rent out rooms in your primary residence, you can still qualify for the IRS Section 121 deduction when you sell, allowing you to exclude up to $250,000 (or $500,000 for married couples) in capital gains. However, be aware of depreciation recapture rules and how renting affects your taxes. Learn more about how renting out rooms or separate units impacts your tax benefits.

a don't forget post it note.

2024-2025 California Property Tax Bills are Out! Check Your Mail or Check Online (The County Will NOT Remind You!!!!)

  • October 3, 2024
  • devinlucas

Attention Newport Beach and Costa Mesa homeowners! The 2024-2025 California property tax bills are out, and it’s time to take action. Don’t wait for a reminder—the County won’t send one! Your first installment is due by December 10, 2024, and the second by April 10, 2025. Missing a payment can lead to hefty penalties, especially with the high property values in our local communities. Stay on top of your property taxes and avoid unnecessary fees. For help navigating your bill or understanding Proposition 19, reach out to Lucas Real Estate—your local property tax experts.