ULA: Up in ArmsJanuary 9, 2023 – Media Mention
Michael Wiener, partner and expert in structuring tax-deferred Section 1031 exchanges, recently spoke to Los Angeles Business Journal about Measure ULA, which will impose a a 4% tax on property sales above $5 million and a 5.5% tax on sales above $10 million on all real property sales in Los Angeles.
“Let’s say it’s a $7 million property with $2 million in debt,” he said. “You’re being taxed on the entire $7 million as opposed to just on the $5 million of value if you exclude the debt.” Wiener also noted the short-term implications of ULA.
“Because it goes into effect April 1, anybody who is trying to sell or restructure the ownership of a property in the city of Los Angeles is trying to get it done before then,” he said.