AB 1611: Taxation: capital gains and losses: single-family rental homes.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, exclude the recognition of any gain or loss on the exchange of property held for productive use in a trade or business or for investment, if that property is exchanged solely for property of a like kind that is to be held either for productive use in a trade or business or for investment, unless an exception applies.

This bill would, under both the Personal Income Tax Law and Corporation Tax Law, prohibit the application of the above-described law to gain from the exchange of single-family residential rental real property, as defined, in this state if the taxpayer owns, as defined, 50 or more single-family residential rental real properties at the time of the sale. The bill would apply to exchanges completed on or after January 1, 2026, for purposes of taxable years commencing on or after January 1, 2026.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

This bill would take effect immediately as a tax levy.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. April 27, 2026In committee: Set, second hearing. Held under submission.
2. April 21, 2026Re-referred to Com. on REV. & TAX.
3. April 20, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
4. April 6, 2026In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
5. March 2, 2026Referred to Com. on REV. & TAX.
6. January 21, 2026From printer. May be heard in committee February 20.
7. January 20, 2026Read first time. To print.