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Mayor Eric Garcetti sells Echo Park home for a huge profit amid competitive LA housing market

Mayor Eric Garcetti sells Echo Park home for a huge profit amid competitive LA housing market
Photograph: Courtesy Redfin

Mayor Eric Garcetti is rolling in some serious dough after selling his Echo Park home for a little more than $1.7 million. The three-bedroom, two-bath house sold over the $1.65 million asking price. And even more amazing? Garcetti and his wife Amy Wakeland purchased the home in 2000 for a mere $345,000, according to a Variety report. That means the couple made more than a $1 million profit. What will they do with that money?? We can only dream.

The home was designed by Daniel L. Dworsky, and the couple reportedly did put some money into an upgrade so that the home would meet their environmental standards: rooftop solar panels, tankless water heater, sustainable wood decks, etc. So why would the couple want to sell? After Garcetti became mayor, he moved his family to the Getty House, a mansion in the upscale Windsor Square neighborhood that is the official mayoral residence. 

It seems as though Garcetti chose the right time to put his house on the market. According to a Redfin housing report released yesterday, LA home prices are rising rapidly in many areas, and particularly the East Side. In February 2016, the average home sold for 14.6 percent more than in 2015. Great for the mayor, not so great for some of his constituents (cough, us) who are looking to buy. 

 


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Comments

1 comments
Hunca M

The Garcettis will have to pay capital gains tax on their profit. They'll be able to take a $500,000 exclusion for a married couple filing a joint return, a deduction for home improvements like the solar system, and the cost of listing and selling the home. Let's say that all adds up to $700,000. That reduces their profit to $655,000. This gain will be taxed at the same rate as their ordinary income for 2016. If they purchased another home right away for $1,700,000 or less, they could actually have their old property tax basis transferred to the new property. But if they choose to sock away their gains while living in Getty House, they'll quickly lose the opportunity.