Elias Lavi, CPA is the firm's principal. Shawn Lavi is co-owner. Together the practice covers day-to-day accounting and the planning work that sits next to acquisitions and refinances: S-Corp questions, 1031 exchange coordination, cost segregation studies, and property tax appeals. The office is at 7707 Sunset Blvd in Los Angeles.
We keep advice concrete: what to file, what to wait on, and what to document before you close. If you want a second set of eyes on a property, an entity change, or next year's tax calendar, book a consultation through our Calendly link (Book Consultation). Bring prior returns, a property list, and any closing timelines you already know.
Why real estate investors need a specialist
Real estate tax is not a subset of general tax. It sits on top of depreciation rules, passive activity limits, entity-level elections, and California-specific statutes that most generalist preparers never touch. A missed cost segregation study, a wrong REPS determination, or a 1031 exchange that fails the identification rules can cost an investor tens of thousands of dollars in a single year — and compound across a portfolio.
The investors who lose the most are usually the ones whose CPA also does their brother-in-law's restaurant books. Real estate deserves a CPA who reads the code sections, tracks the California conformity differences, and plans before December — not after.
California rules that change the math
California does not simply follow federal tax law. Several nonconformity issues directly affect real estate investors:
- Bonus depreciation. California does not allow the federal 100%/80%/60% bonus depreciation on qualified property. You get the federal deduction, but your California return adds it back — creating a permanent federal-state difference you must track.
- Section 179. California limits Section 179 differently than federal, and does not allow it for real property used in residential rental.
- 1031 exchanges. California conforms to Section 1031 for real property, but historically did not conform for personal property. Post-TCJA, like-kind exchange is real-property-only federally, so this matters mainly for assets with fixtures or equipment.
- S-Corp franchise tax. A California S-Corp pays 1.5% of net income as franchise tax (not the $800 minimum that applies to LLCs and C-Corps in their first four years). The math on electing S status is different here than in a no-tax state.
- Proposition 13. Assessment caps limit property tax growth while you hold, but a change in ownership or new construction triggers reassessment to fair market value. How you hold and transfer property determines whether reassessment is triggered.
Los Angeles-specific considerations
Owning real estate in the City of Los Angeles adds another layer. The ULA (United to House LA) transfer tax applies to properties above threshold values and can reach 5.5% on the value above the thresholds — a material cost on any sale or transfer that must be modeled before you list. Los Angeles also has rent stabilization (RSO) for many multifamily properties, which affects vacancy, turnover, and the economics of a cost segregation study. And LA County property tax assessments can be appealed annually, which is one of the highest-ROI moves an investor can make in a declining or flat market.
What we handle
- 1031 exchange planning and compliance — identification, timing, qualified intermediary coordination, and California conformity
- Cost segregation and bonus depreciation — engineering studies, the federal/California difference, and recapture planning
- S-Corp election and reasonable salary — entity selection, payroll, and the California franchise tax math
- Real estate professional status (REPS) and passive losses — the 750-hour test, grouping elections, and documentation
- Property tax appeals — Los Angeles County assessment review and hearing representation
How we work
We are proactive, not reactive. That means a mid-year planning conversation, not a surprise in April. We model your entity structure, your depreciation strategy, and your disposition timing as a connected system — because a decision in one area (say, electing S-Corp status) changes the outcome in another (how you take distributions, how you handle a 1031, whether REPS matters).
We also coordinate with the rest of your team — your qualified intermediary, your cost segregation engineer, your real estate attorney, and your lender. Real estate tax is a team sport, and the CPA is usually the one who should be calling the plays.
Based in Los Angeles, working with investors nationwide
Our office is at 7707 Sunset Blvd in Los Angeles. We work with investors across California and, for federal matters, across the country. If you own real estate and your current CPA has never mentioned cost segregation, REPS, or the California bonus depreciation add-back, that conversation is overdue.