Hollywood Celebrities Sell Off Properties Ahead of New ‘Mansion Tax’
Recently, there has been a flurry of activity in the Hollywood real estate market, with several high-profile celebrities selling off their properties ahead of the proposed new “mansion tax.”
According to reports by The New York Times, several A-list Hollywood celebrities, such as Jim Carrey, Britney Spears, and Kylie Jenner, are hurrying to sell their high-end apartments before the implementation of Los Angeles’ new “mansion tax” on April 1.
In February, Jim Carrey listed his 12,700 square feet home for sale at US $29 million.
Similarly, Britney Spears put her 11,650 square-foot home in Calabasas up for sale with a price tag of $12 million, while Kylie Jenner listed her Beverly Hills home for more than US$33 million.
How the Proposed Mansion Tax Affects Hollywood
The aim is to sell these properties quickly before the new tax law comes into effect, as people are trying to secure their profits.
— NDTV News feed (@ndtvfeed) March 28, 2023
Tyrone McKillen, a luxury agency Official broker, informed the NY Times that the situation had caused a frenzy among people rushing to complete transactions before the April 1 deadline.
He added that this presents numerous prospects for buyers searching for advantageous deals.
The proposed tax, which has been under discussion in California for several years, would apply a one-time tax on homes that sell for more than $1 million.
The tax would start at 0.25% for homes between $1 million and $5 million and increase to 1% for homes valued at over $25 million.
While the tax has not yet been implemented, it has caused a stir in the real estate market, particularly among high-end buyers and sellers.
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Many are concerned that the tax will make it more difficult to sell luxury properties and could lead to a decline in property values.
🏠 Some of the biggest names in Hollywood are rushing to sell their multi-million-dollar houses in Los Angeles before a new “mansion tax” kicks in on April 1 https://t.co/pyh91CsIqC
— The Telegraph (@Telegraph) March 26, 2023
As a result, several celebrities have been rushing to sell off their properties before the tax comes into effect.
Which Celebrities are Selling their Properties?
DeGeneres, who has a reputation for flipping homes, recently listed her Beverly Hills estate for $53.5 million.
The property, which she purchased for $42.5 million two years ago, boasts nine bedrooms, 12 bathrooms, and a 50-foot infinity pool.
Madonna, who has owned several properties in Los Angeles over the years, has listed her Beverly Hills estate for $35 million.
She purchased the property for $19.5 million in 2013, including a tennis court, a gym, and a 60-foot swimming pool.
Aniston, meanwhile, has put her Bel Air property on the market for $35 million. The property, which she purchased for $21 million in 2011, features four bedrooms, five bathrooms, and a private vineyard.
The Impact of the New Mansion Tax
While the proposed mansion tax is not yet law, the fact that so many high-profile celebrities are selling off their properties suggests a real concern in the industry about its potential impact.
As always, in real estate, the market is driven by supply and demand, and if the tax deters buyers, it could significantly impact property values.
The city’s objective is to generate up to $1 billion by selling these upscale apartments, with the proceeds allocated to public housing to tackle the problem of homelessness.
The ULA tax intends to ” finance projects for reasonably priced accommodations and offering assistance to occupants in danger of becoming homeless,” as stated on the city’s official website of Los Angeles.