AVOID the LA City Mansion Tax (Measure ULA) - Guide for Los Angeles Property Owners

LA City real estate sales are about to get a lot more expensive thanks to Measure ULA, aka the Mansion Tax. As of April Fool’s Day 2023, transfer taxes will dramatically increase for any real estate sales over $5 million. We run through which properties will owe these taxes and go on a whiteboard adventure to calculate actual Measure ULA transfer taxes. Finally we cover 6 ways to avoid paying the LA City Mansion tax!

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Discussion

#1 By Edwin at 12/18/2022 1:03 PM

You are correct that a sale substantially below true market value will likely get it reappraised at market value, but I'm not sure if it would trigger this tax. It depends on the language and how this law was written.

#2 By Christian Walsh at 12/20/2022 0:37 PM

Agreed, Edwin! The Finance Director will have latitude to make changes...my guess is this person will make the necessary changes (if needed) to make sure that any major reassessments pay their tax. We'll see as it's rolled out...

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