Personal Income Tax Law: exclusions: real property.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates an exclusion from California personal income tax for gains received from the sale of certain real property. Specifically, it applies to gains realized by individuals who are 65 years of age or older and have owned the property as their primary residence for at least 20 years prior to the sale, provided the property was sold to a natural person. The exclusion will be in effect from January 1, 2027, through December 1, 2032.
Key provisions
- Excludes gains from the sale of qualified real property from gross income.
- Applies to individuals 65 years of age or older.
- Requires the property to have been the taxpayer’s primary residence for at least 20 years.
- The property must be sold to a natural person.
- The exclusion is effective from January 1, 2027, to December 1, 2032.
- Defines ‘qualified real property’ and ‘qualified taxpayer’.
- Includes additional information requirements for new tax expenditures.
- Takes effect immediately as a tax levy.
Who is affected
- Senior citizens (65 years or older)
- Homeowners
- Real estate sellers
- California taxpayers
- Natural persons purchasing real property
Notable changes
- Creates a new exclusion for real property sales gains.
- Specifies eligibility criteria based on age and ownership duration.
Bill text
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Sponsors
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1 on record
Primary sponsor
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