AB 2394: Personal Income Tax Law: exclusions: real property.

Official summary

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

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 gain received by a qualified taxpayer as a result of the sale or exchange of qualified real property, as defined. The bill would define “qualified taxpayer” to mean an individual who is 55 years of age or older 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.

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 9, 2026Referred to Com. on REV. & TAX.
6. February 21, 2026From printer. May be heard in committee March 23.
7. February 20, 2026Read first time. To print.