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.
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Taxes and Property Taxes (Proposition 13, 60, 90, 58, 193 and Proposition 19)
Think Your Property Tax Bill is High? Check Out Orange County’s Biggest Bills!
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.
1031 Exchanges and Vacant Properties: Can You Defer Taxes on an Empty Home?
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.
California Property Taxes: Second Installments Due By April 10, 2025
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
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
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
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!!!!)
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
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
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
