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The LLC Loophole in the Aftermath of Proposition 19

Proposition 19, enacted in the November Election, eliminates the parent-child exclusion from property tax reassessment for transfers of rental property from parent to child.  As a result, real estate investors are looking for new ways to transition real estate to the next generation in a tax-efficient manner.  The rules applicable to LLCs under the California Revenue & Taxation Code (R&TC) can provide a great loophole for avoiding higher property taxes. Real property owned by an LLC is either subject to the Change in Control Rules under R&TC 64(c)...