Large mega-mansion in LA is approaching the deadline in a WEEK before the seller loses his fortune
- Hedge funder Jeffrey Feinberg is set to accept a $6 million loss to avoid LA’s latest mandatory tax hike
- While the financier tries to avoid a $2 million tax, other opulent homes in the area could lose upwards of $8 million
- Los Angeles elites face a new mansion tax in a week that will take a 5.5 percent cut of any sale over $10 million
A California hedge funder is trying to sell his sprawling LA mansion before a looming April 1st deadline costs him millions.
Jeffrey Feinberg, the millionaire head of Feinberg Investments and former CEO of George Soros’ hedge fund, is facing a new mansion tax to be imposed on Los Angeles’ opulent real estate market.
The financier is willing to accept a $6 million cut on his extravagant seven-bed, eleven-bathroom estate, far less than the $44 million he paid just two years ago, simply to avoid losing another $2 million when it the new tax hits, reports CNBC.
Adorned with the most lavish amenities money can buy, including a Kobe Bryant-themed basketball court and a 70-foot infinity pool with panoramic views of the California coast, the property is one of the most luxurious in the country.
And Feinberg isn’t the only one feeling the sting, with many of the opulent region’s priciest mansions on the market looking set to cost their current owners a fortune.
Feinberg faces the huge loss thanks to a new LA property tax, which will see the city take 4 percent of all home sales between $5 million and $10 million.
And for properties that sell for more than $10 million, officials will take a hefty 5.5 percent cut when the homeowner makes a profit.
The local law takes effect April 1, forcing Feinberg’s hand, after a year-long battle to relieve his lavish estate.
After purchasing the home for $44 million in 2021, Feinberg put the home back on the market for $48 million after just one year, but was unable to find a taker.
He later brought in an aggressive pricing strategist, who cut $10 million off the asking price—which would have cost Feinberg the equivalent of $64,000 for each of the 94 weeks he had lived in the home.
And it’s easy to see why the estate reportedly cost the financier millions in expenses, not least because of the full staff needed to maintain it.
Numerous private decks are spread across the sun-drenched behemoth, which has a unique open-plan rooftop layout that sets it apart from its opulent neighbors.
The stunning interior is set with clean, stylish finishes and expansive spaces, including a games room, home theater, golf simulator and seven elegant bedrooms that rival the most expensive hotels in the world.
On the lower level, glass walls offer a glimpse into an elegant car gallery – guaranteed to be filled with supercars fit for anyone who can afford the huge mansion.
Los Angelinos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion each year.
The money is set to go toward affordable housing and tenant assistance programs in the area, drawing money from every home sale over $5 million.
Unless it miraculously finds a buyer within a week, one of the worst-hit properties for sale is a sprawling, 12-bedroom mansion in Bel Air, which is currently on the market for a whopping $139 million, according to Zillow.
Dubbed “Le Fin”, the mansion offers panoramic views of Los Angeles and can compete with almost any home in the country for aesthetic design.
A spiral staircase winds around a huge chandelier made from 55,000 crystals, while every piece of furniture was custom-made for the property by Italian luxury brand La Contessina.
However, the new manor tax would take over $7.6 million from the sale if sold at current market value after April 1.
The city would take even more from the sale of another opulent residence in the area – with a home labeled “The Manor” in the exclusive community of Holmby Hills coming in at $155 million.
Although the city would take an odd $8.5 million from the sale, the new owners would certainly feel it was worth it, as they enjoyed the many features.
Set on a majestic four-acre lot, The Manor offers a private escape from the hustle and bustle of LA life – while bordering the prestigious Los Angeles Country Club.
Offering an over-the-top 27 bathrooms spread over its 56,500 square foot lot, the home also comes with a bowling alley, tennis court, beauty salon, rose garden and professional viewing room.
For those who don’t want to cross the $100 million mark, a posh $49 million estate is also in the crosshairs of the new mansion tax.
Also located in the highly desirable community of Bel Air, the stylish home features six bedrooms, eleven bathrooms and unobstructed views of the Pacific Ocean.
A sunny deck is filled with lush landscaping and an infinity pool, which is steps away from an indoor private spa.
With also a private wine cellar, gourmet kitchen and home cinema, the home’s facilities are spread over a 5,000 square meter plot.
But under LA’s latest tax, the owners would lose just over $2.7 million if they divorce after April 1.
Among the most stylish properties to fall under the new wealth tax, you can pick up for $64 million, an enviable estate located within the prime Palisades Riviera.
While not the largest on the list, with just over 1.1 acres of land, the 13,000-square-foot home also comes with a 3,000-square-foot, two-bedroom guesthouse.
Boasting eight bedrooms and 14 bathrooms, the opulent home also features two studies, a gym, media and games room and a Japanese spa bath.
Outside, a long private driveway ends with the picturesque property, which has a large pool and hot tub in the manicured backyard.
But unless the owners are able to sell within a week, the owners are set to lose $3.5 million.