The Real Estate Tax Rules That Could Save You Thousands

By Hal Sweasey

Hal Sweasey is a highly respected Broker and REALTOR® serving California’s Central Coast, bringing more than 35 years and 3,300 successful property sales.

Most homeowners don’t think much about taxes until they’re buying, selling, or inheriting a home, and by then, the assumptions they’ve been carrying can cost them real money. The right knowledge at the right moment, on the other hand, can save thousands.

That’s exactly why we brought a tax expert onto the SLO County Real Estate Podcast.

We sat down with RJ Hassey, a CPA with Glenn Burdette right here in San Luis Obispo, to walk through the real estate tax situations that come up most often for local buyers, sellers, and families. RJ grew up here in San Luis Obispo, and he’s the kind of person who genuinely nerds out on helping people keep more of their money, so this conversation covers a lot of ground in a way that actually makes sense.

We get into the recently expanded SALT deduction and what it means for a high-tax state like California, especially for owners of higher-value homes. We talk through the Prop 19 property tax basis transfer that lets homeowners 55 and older carry their lower tax basis with them, and the buy-versus-rent math that looks very different once you factor in mortgage interest, property taxes, and the principal you’re paying toward your own home instead of a landlord’s.

RJ also breaks down the capital gains exclusion when you sell your primary residence, how the improvements you’ve made over the years factor into what you owe, the step-up in basis that can be a major benefit when a home is inherited, and the Prop 19 wrinkle that can hit heirs with a surprise property tax bill if nobody moves in.

One thing that comes through the whole conversation is RJ’s favorite kind of client: the proactive one. As he puts it, the hardest situations to fix are the ones that have already happened. A quick conversation before you make a move is worth far more than trying to clean things up after the fact.

You can watch the full conversation above, or feel free to skip to the topics that interest you most using the timestamps below:

00:00 — Meet RJ

01:05 — The SALT Cap

03:33 — Prop 19 Transfer

06:29 — Buy Versus Rent

08:19 — Selling Your Home

12:49 — Zero Percent Gains

16:19 — Inheriting A Home

19:08 — Prop 19 Surprise

22:45 — How To Reach RJ

A quick and important note: everything in this video is general information, not tax advice. Everyone’s situation is genuinely different, so talk with a qualified CPA or tax professional about your specific circumstances before you make a decision.

Whether you’re thinking about buying your first home, selling one you’ve owned for decades, or planning for what happens to a family property down the road, the smartest first step is a conversation, well before any decisions get made.

If you have questions about buying or selling here in San Luis Obispo County, reach out to us at 805-781-3750, email us at hal@teamsweasey.com, or visit teamsweasey.com. We’re always happy to help you make a smart, well-informed move.