Tricky Property tax question (California)?

When a piece of property is sold here in California, the property is reassessed. But what if the property is the sole asset of an entity, such as an LLC? If instead of selling the property, you sell the interest (shares) of the LLC?

For example: Let's say I own XYZ LLC which LLC's sole asset is a piece of commercial property, Prop X. XYZ LLC pays property tax on Prop X based on a value 500K. If I sell Prop X for 1M, the new owner's prop tax bill will double. If I sell my interest in XYZ LLC, the ownership of Prop X hasn't changed, no reassessment?

Have I found a loophole in the tax law?

You may wonder why I care if the new owner gets reassessed, no skin off my nose... but if the property doesn't get reassessed, the new owner's tax bill won't go up and then the property is worth more $$$, therefore more $$$ in my wallet... That and I really care about my fellow man.

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