Assembly Bill 1771, also known as the California Housing Speculation Act, aims to change real estate tax policy to discourage investors from quickly reselling properties like single-family homes.Under the proposed bill, an additional 25% tax would be imposed on the gain from the sale of a qualified asset (including homes) within three years of the previous sale.The tax reduction is dependent on the number of years passed since the initial purchase of the qualified asset, ranging from a 20% reduction for sales occurring between 3.01 to 4 years to a 100% reduction for sales occurring more than seven years after the initial purchase.The revenues generated by this tax increase would be deposited into the Speculation Recapture Community Reinvestment Fund, which aims to support affordable housing, local governments, schools, and infrastructure projects.The bill is introduced by Assembly Member Ward, and the proposed tax changes would take effect from January 1, 2023.Assembly Member Ward argues that short-term investors in the market, including fix and flip investors, contribute to rising housing prices, limiting opportunities for Californians to purchase homes.While the bill may discourage short-term speculative transactions, it is worth noting that California's tax laws still provide certain advantages for investors, including unlimited tax write-offs and depreciation benefits.The bill is subject to legislative approval, and Assembly Member Ward will speak publicly about the bill at the San Diego County Administration Center on a specified date.Please note that this is a simplified summary of the bill and its potential impact on fix and flip investors.

The risks are:- non payment by buyer and must foreclose- lender calls the note dueThe answer to the 1st is to make sure there is a good down payment so dollar wise this does not harm seller.The answer tot he 2nd is to use a land trust and appear Garn St Germain compliant.Just my 2 centsAlan

How does the actual "closing" occur?

Every time this occurs, send them an email and put it in writing.

If peace of mind is your priority, there’s no harm in selling now, putting that equity towards Sacramento, and enjoying being closer to your family.

Since no transaction occurred and she is still the beneficiary and owner of the LLC, would the cost basis be maintained?

So, if I was the tenant I would be suing you for liquidated damages because you very well may be costing them money and causing them harm.

If you unload your cash, if a unforeseen great opportunity occurs hopefully you are ready. 

My gut tells me that Texas, particularly Austin and Houston, could be where the next wave of growth and expansion occurs, mainly driven by strong business and job creation trends.Here’s what I’m looking for in my US investments:Free-standing houses with a good land component, at least 3 bedrooms and 2 bathrooms, and in well-maintained condition.Yielding over 6%, with a slight cash flow positive outcome, while also offering medium-term capital appreciation potential.Holding for at least 5 years or more, with a view towards steady growth.The long-term goal is financial independence, reducing reliance on salary-based income, and building assets during this accumulation phase.Debt reduction is on the horizon—looking to consolidate and start winding down debt within the next 7 years.If anyone has experience investing in the Texas real estate market or any tips on navigating US property investments, feel free to share your thoughts!

For example, the National Association of Realtors (NAR) reports that around 10% of home sales occur without being listed on the MLS.