Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
Malibu is its own city in Los Angeles County, with its own short-term rental permit and its own rebuild programs after recent fires. We help Malibu owners handle the rental filings and plan a rebuild or sale with the tax numbers in front of them.
LaviCPA is Shawn Lavi, CPA and Elias Lavi, CPA. We have one office, at 7707 Sunset Blvd in Los Angeles. Malibu clients meet with us there or by Zoom.
Renting short term in Malibu
Since January 15, 2021, any home or structure rented for 30 days or less needs a City of Malibu STR permit. The program comes from Ordinance No. 468 and Malibu Municipal Code Chapter 17.55. The application fee is $372. Advertising or operating without a permit can bring fines.
Short stays also owe Malibu's transient occupancy tax. Voters raised it from 12% to 15% with Measure T in November 2020.
For income tax, the length of the average stay and how much you take part in running the rental decide how the losses are treated. We review that before you count on a deduction.
Rebuilding after the Franklin or Palisades fire
For the 2024 Franklin fire and the 2025 Palisades fire, state law gives owners eight years instead of five to rebuild and keep their base year value. The deadline for the calamity claim with the Assessor is 24 months.
The City of Malibu also runs a Fee Waiver Program. It waives city planning and building permit fees for owner-occupied homes rebuilt like-for-like, or up to 10% larger. Applications are due by June 30, 2028, and permits must be pulled by December 30, 2030. Fees from other agencies are not waived.
Insurance proceeds, rebuild costs, and basis all affect the federal and California returns. We track them from the first payout.
Selling in Malibu
Malibu does not levy its own city transfer tax. A sale pays the LA County rate of $1.10 per $1,000. Measure ULA is a City of Los Angeles tax and does not apply inside Malibu. For a 1031 or a straight sale, the bigger planning items are your gain, depreciation recapture on rentals, and the California return.
Malibu FAQs
Do I need a permit to rent my Malibu home on Airbnb?
Yes. Any rental of 30 days or less needs a City of Malibu STR permit, and those stays owe the 15% transient occupancy tax.
Does the Malibu fee waiver cover a larger rebuild?
Up to 10% larger than what was lost, for owner-occupied homes. Applications are due June 30, 2028.
Does ULA apply to a Malibu sale?
No. ULA is a City of Los Angeles tax. A Malibu sale pays the county transfer tax of $1.10 per $1,000.
Book a free 30-minute New Client Introduction
Tell us whether you are renting, rebuilding, or selling. We will show you the tax side of that choice.
Book a free 30-minute New Client Introduction
General information only, not advice for your situation. Rules and rates change, so we confirm them before you act.