L.A.'s rich are already scheming ways to avoid new 'mansion tax'

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L.A.'s rich are already scheming ways to avoid new 'mansion tax'
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Homeowners, developers and real estate agents are all bracing for the incoming mansion tax set to hit L.A. next year.

Just weeks after Los Angeles voters

Others are getting a bit more creative. Since the tax only affects sales above $5 million, some homeowners are looking into splitting up their properties into smaller parcels with different ownershipFor example, if a homeowner is selling a mansion for $15 million, they’d be slapped with a $825,000 tax bill. But if they split up the property into three parts owned by three different entities and sold all three pieces for $4.

Another strategy might be to hatch deals off the books to keep a sale under $5 million. For example, if a seller wanted $7 million for their house, they could reach a deal with a buyer to sell it for $4.999 million, thus avoiding the tax, but then sell the furniture in the home for $2 million.Jason Oppenheim of the Oppenheim Group called the tax a travesty. He says sales will skyrocket for the next three months, but once the tax kicks in, the market will freeze.

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