Maximize Your California Real Estate Savings with Smart Tax Strategies
America has been debating taxes since the beginning. In honor of America’s 250th, here are a few California real estate tax strategies homeowners and investors should know about: 1031 Exchange: If you own investment property, you may be able to defer capital gains taxes by exchanging it for another qualifying investment property. Agricultural Tax Benefits: Certain properties used for agriculture may qualify for preferential property tax treatment. Eligibility depends on the property, its use, and applicable local programs, so check with your county assessor. Disabled Veterans’ Property Tax Exemption: Qualifying disabled Veterans and certain surviving spouses may be eligible for an exemption that reduces the taxable assessed value of their primary residence. Primary Residence Capital Gains Exclusion: If you meet the IRS ownership and use tests, you may be able to exclude up to $250,000 of gain when selling your primary residence, or up to $500,000 for certain married couples filing jointly. Real Estate Professional Status: A real estate license alone does not qualify you. But for those who meet the IRS requirements, real estate professional status can significantly change how certain rental real estate losses are treated for federal income tax purposes. This is one to discuss with your CPA. Real estate isn't just about what you buy or sell. Understanding the tax rules surrounding your property can have a major impact on your long-term financial strategy. Know what benefits may be available to you, and build the right team around you to use them correctly. For educational purposes only. This is not tax or legal advice. Consult a qualified CPA or tax professional regarding your individual situation. Evangeline Nguyen, REALTOR® eXp Realty CA DRE #02210833 Serving San Francisco, San Jose, East Bay, Fairfield & Beyond
September 29, 2026