Bay Area ADU Blogs: Laws, Costs & Design Tips

Short answer: Yes, building an ADU raises your property tax bill, but only by the assessed value of the new unit. Your existing home keeps its Proposition 13 base value and is not reassessed. In the Bay Area, the increase is typically $1,500 to $3,000 per year, depending on the ADU's size and assessed value. Key Takeaways No full reassessment: Only the "new construction" portion (the ADU) is assessed at current market value. Your primary residence stays protected under Propos

If you're planning on buying or building an investment property, you need to know about one of the most powerful tax strategies in real estate: cost segregation combined with short-term rental. With the latest tax codes, this "Short-term rental loophole" strategy allows owners to treat their rental activity as a business rather than passive income. This reclassification under specific IRS rules allows for greater tax deductions, including the ability to offset non-rental inco