Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
If your Palisades home or rental was damaged or lost in the January 2025 fire, a few property tax and income tax rules now work in your favor. Some of the deadlines are longer than usual. We help owners decide between rebuilding, selling, and moving, with the tax cost of each laid out.
LaviCPA is Shawn Lavi, CPA and Elias Lavi, CPA. Our only office is at 7707 Sunset Blvd in Los Angeles. We meet Palisades clients there, by phone, or on Zoom.
Property tax while the lot sits empty
The calamity claim asks the LA County Assessor to lower your assessed value while the property is damaged. The normal deadline is 12 months. For the 2025 Palisades fire, state law extended it to 24 months from the date of damage.
State law also stretched the rebuild window for this fire from five years to eight. A rebuild that is substantially equivalent to what burned keeps your existing base year value. Anything beyond that is assessed as new construction.
Selling and buying elsewhere in California
Under Proposition 19, a homeowner whose primary residence was more than 50% damaged in a wildfire can move its base year value to a replacement home in any California county. You sell the damaged property as is. The replacement has to be bought or built within two years of that sale. If the new home is worth more than the old one under the value test, the excess is added to your base.
You can do this or rebuild, not both. We compare the property tax on both before you list the lot.
Federal casualty loss and insurance money
The January 2025 fires are a federally declared disaster for Los Angeles County, FEMA DR-4856. That opens the casualty loss deduction for personal-use property, subject to limits. Insurance proceeds, your basis, and any gain on the payout all have to line up on the return. Rental property follows its own business-loss rules.
A Palisades sale is still a City of LA sale
Pacific Palisades is in the City of Los Angeles. A sale, burned lot included, pays the county tax, the city's 0.45% base tax, and ULA above the thresholds unless an exemption applies. For closings after June 30, 2026, ULA is 4% above $5,400,000 and 5.5% at $10,900,000 or more.
Pacific Palisades FAQs
How long do I have to file the calamity claim for the Palisades fire?
24 months from the date of damage, instead of the usual 12. The claim goes to the LA County Assessor.
Can I move my Prop 13 base to a home in another county?
Yes, if your primary residence was more than 50% damaged, you sell it, and you buy or build the replacement within two years of the sale. Value above the equal-or-lesser test is added.
Does ULA apply if I sell my burned lot?
Unless an exemption applies, yes. The Palisades is inside Los Angeles city limits, and ULA is based on the sale price.
Book a free 30-minute New Client Introduction
Bring your insurance summary and your last property tax bill. We will lay out rebuild, sell, and move side by side.
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.