CALIFORNIA HOUSE FLIPPERS & POSSIBLE NEW TAX POLICY
The all-cash real estate investor has been buying homes for years; rehabbing them; quickly relisting them for a profit. Are these short-term investors contributing to soaring home prices, as well as, possibly outbidding the average person who wants to buy a home in California?
"The California Speculation Act" - Assembly Bill 1771 is intended to change real estate tax policy by taxing profits. Beginning January 2023, the bill proposes if an investor flips a home within the first three (3) years of the original purchase date, they would be taxed 25% on profits. I've read several articles on the subject and CBS8 provides a concise overview. Click here to read what they have to say.
If you're interested in a deep dive into the subject, read Assembly Bill 1771 for detailed information.