Shawn Lavi, CPA, the principal, and Elias Lavi, CPA, the firm's founder, run the practice. Together they cover 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. 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.
Investors tend to run into trouble when their tax preparer doesn't regularly work with real estate. 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 doesn't allow federal bonus depreciation at any rate, including the 100% rate for property acquired after January 19, 2025. You get the federal deduction, but your California return adds it back — creating a federal-state timing difference you must track. The deduction is not lost; it is taken over the asset's life instead of in year one.
- Section 179. California caps Section 179 at $25,000, far below the federal limit ($2,560,000 for 2026). Under both federal and California rules, property used in residential rental buildings generally doesn't qualify.
- 1031 exchanges. California follows Section 1031 for real property. For tax years beginning in 2025, California exchanges are real-property-only, the same as federal. If you replace California property with out-of-state property, California tracks the deferred gain through an annual Form FTB 3840.
- S-Corp franchise tax. A California S-Corp pays 1.5% of net income as franchise tax, with an $800 minimum. 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 adds 4% on sales over $5,400,000 and 5.5% on sales of $10,900,000 or more. It applies to the entire price, not just the amount over the threshold, and it's on top of the city's 0.45% base transfer tax. These thresholds apply to sales closing after June 30, 2026 and adjust every July. This is 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 each year, which is worth checking in a flat or falling 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 effort, and our job is to keep the tax side connected so each piece fits the plan.
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, by Zoom and phone, across the country. Our 1031 Exchange Tax Plan is available in any U.S. state. Other out-of-state work is scoped on the consult. 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.