AB 2394: Personal Income Tax Law: exclusions: real property.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-04-20
Current Status:
In Progress
(2026-04-27: In committee: Set, second hearing. Held under submission.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
The Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would exclude from gross income amounts gain received by a qualified taxpayer as a result of the sale or exchange of certain real property. qualified real property, as defined. The bill would define qualified taxpayer to mean an individual who is 65 55 years of age or older and who has owned the real property for 20 years or more. on the date of the sale. The bill would define qualified real property to mean real property satisfying certain conditions, including the requirement that the property was used by the qualified taxpayer as their primary residence, as specified, and that the property is sold to a natural person.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Discussed in Hearing
4MIN