Do you know how to
preserve your tax basis when
BUYING and SELLING
in the Golden State?

  • Take Advantage of Proposition 13: If you own real estate in California, benefit from Proposition 13, which limits annual property tax increases. This can help you keep your property's assessed value and tax basis lower over time.
  • Consider 1031 Exchanges: If you're selling investment property, explore the option of a 1031 exchange. This allows you to defer capital gains taxes by reinvesting the proceeds into another similar investment property. This way, you can potentially preserve your original tax basis.
  • Track Capital Improvements: If you make improvements to your property, keep records of these expenses. Capital improvements can be added to your property's tax basis, which can help reduce capital gains when you eventually sell.
  • Consider Gifting Strategies: If you plan to pass assets to heirs, consider gifting strategies that can help maintain a stepped-up basis for your beneficiaries. Consult an estate planning attorney to explore the best options for your situation.
  • List ItemPlan Ahead: Tax planning should be an ongoing process. Consider your long-term financial goals and how various transactions may impact your tax basis over time. Strategic planning can help you minimize tax liabilities while maximizing your financial growth.
  • Consult a Tax Professional: Taxes, especially in a state like California, can be complex. It's wise to consult with a tax professional or accountant who specializes in California tax laws. They can provide tailored advice and help you make informed decisions.
If you want to discuss these topics further, CLICK HERE, to schedule a call!

**Tax laws can be intricate, and individual circumstances vary. It’s crucial to seek professional advice tailored to your specific situation when making significant financial decisions in California to ensure you’re keeping your tax basis as low as legally possible.

 
 
 

Linda Granger
DRE: CA 01048013 NV B.1001129
REALTOR | Equal Housing