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
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.
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...
Great Video. Question about the land sale suggestion. Does this just delay the inevitable tax hit once title is transferred? Could the same be accomplished with a lease to own agreement with an option payment that is <5 million?
Thank you.
Question. If not stipulated in the property purchase contract, who pays the tax? the seller or buyer? Ive seen "Mansion" taxes in other states/cities and it seems like the buyer is responsible but the statute and articles aren't all that clear who pays by default .
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