Taxes and Property Taxes (Proposition 13, 60, 90, 58, 193 and Proposition 19)

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
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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
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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 info@lucas-real-estate.com or 949.478.1623.

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
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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
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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.

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.

Understanding Supplemental Property Taxes in California

May 10, 2024
devinlucas

At Lucas Real Estate, we pride ourselves on being experts in all aspects of real estate, including property taxation. Understanding how taxes affect your property is crucial for making informed decisions as a homeowner or investor. In this blog, we delve into a common yet often misunderstood topic: supplemental property taxes in California.

Understanding Your Property Tax Bill: Navigating Mello-Roos Fees

May 10, 2024
devinlucas

As residents of vibrant communities like Newport Beach and Costa Mesa, property owners of new construction often encounter additional charges on their tax bills beyond the standard property tax rate. One such fee is the Mello-Roos fee, designed to fund essential public facilities like schools, parks, roads, and libraries. But what exactly are Mello-Roos fees, … Continue Reading

2024 IRS Taxable Gift Exclusion Amount Raised To $13,610,000 Per Person / Reportable Exclusion Raised to $18,000 Per Person

May 2, 2024
devinlucas

For 2024, the federal estate tax threshold is $13.61 million for individuals, which means married couples don’t have to pay estate if their estate is worth $27.22 million or less. For 2023, the threshold was $12.92 million for individuals and $25.84 million for married couples.

tiny model house made with hundred dollar bills

California Property Taxes: Second Installments Due By April 10, 2024

March 19, 2024
devinlucas

the second installment is now around the corner, due by April 10, 2024.

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