Property tax rules are enforced and taxes collected on the county and city level but the state has regulatory guidelines. CA is s non tax lien state, which means that the county will sell property in an auction if taxpayer is too delinquent. Here is a document that I found on a government website explaining how it works at the state level here in CA.

I was curious about the industry we are working in and its importance to the American Economy. It’s safe to say we are in an important industry sector if you didn’t know already. Check this: https://www.google.com/search?q=show+the+pie+chart+of+the+us+economy+sectors&client=safari&hs=Fijq&sca_esv=46ee9a34cc4453a3&hl=en-us&sxsrf=APpeQntsG1xF9fJCJN0R-8LnufCZO-UCiQ:1790891883793&udm=50&fbs=ABfTbFVyMZGZf1hfvX9uKjN_-G8c4u0nXx4bEIpwm1lnNH832QGGMdFXpDyzkQgEdtB8w9w-GD6PIjvNPpUnrx3WoOVIqtB7m0uJCnmO69VZCGvjkJswfxpqShzBmeU9vLtlIzpB5qp_I4BbqEr0GaxOvSmJRMiPBfI_gOTpSx7ZgMkeO1phpkSiUAU_pV29X-bP6EvXCNjLxiIQT15MSrAP6nH17FvH7cq8hOzZzSAyHBwOEb8jpqw&vsint=&aep=1&ntc=1&cs=0&sa=X&ved=2ahUKEwi8hcCU6JmXAxWJDzQIHYEMJU4Q2J8OegQIDxAE&biw=390&bih=699&dpr=3&iga=1&utm_campaign=safari_share_1

DO YOU TRACK THE BASIS IN YOUR HOME? Comment below and let us know how you do it. When you sell your home, the tax on your gain depends on your basis, which is what you paid for the home plus the cost of improvements. But improvements count only if you can prove them. Basis Matters More Every Year The home sale exclusion of $250,000 ($500,000 for married couples) was set in 1997 and has never been adjusted for inflation, while home prices have roughly quadrupled since then. Many long-time homeowners now face a taxable gain when they sell. In one court case, a couple claimed $286,070 in improvements but could not prove them. The court allowed $82,039, leaving the couple with tax on $101,907 of gain plus the cost of going to court. What Counts You add to basis any improvements that add value, extend the home’s life, or adapt the home to new uses, such as a new roof or a kitchen remodel. Repairs do not count, and neither do improvements you later removed or replaced. Depreciation, deducted casualty losses, insurance reimbursements, and energy credits reduce your basis. Records to Keep - The contract or proposal - The final invoice - Proof of payment (Download check images, since banks often purge them after about seven years.) - A few dated photos (As newspaper legend Arthur Brisbane said, “Use a picture. It’s worth a thousand words.”) Scanned records in an organized electronic folder are fine. Keep them as long as you own the home, plus at least three years after the year of sale.

THAT MEANS LOSSES CAN OFFSET PASSIVE INCOME......MAYBE If you own rental real estate, you may have passive losses that have been suspended for years. Although you cannot currently deduct these losses, they are not lost forever. With proper planning, you may be able to unlock them and use them to reduce your taxes. One common way to free suspended passive losses is to sell your entire interest in a rental activity. Once released, these losses can offset other income, potentially producing significant tax savings. But not every sale works. Selling a rental property to a family member or to a corporation controlled by you or your family generally does not release suspended losses. Likewise, giving the property away can permanently reduce the tax benefit of those losses. Another important planning consideration for 2026 is the excess business loss limitation. Even if you free a large amount of suspended losses through a sale, the law may limit how much you can deduct in the current year, with the remainder carried forward to future years. Because the tax consequences depend on how your properties are grouped, who buys them, and the timing of the sale, advance planning is essential.

https://youtu.be/l0Q43c_vpkE?si=zNa6dhLHCg5kz3YO