AB-1611 • 2026

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

Housing Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Haney
Last action: 2026-04-27
Official status: In committee: Set, second hearing. Held under submission.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

AB 1611, as amended, Haney.

What This Bill Does

AB 1611, as amended, Haney.
Taxation: capital gains and losses: single-family rental homes.
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 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.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-04-27 California Legislative Information
In committee: Set, second hearing. Held under submission.
2026-04-21 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-04-20 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-04-06 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2026-03-02 California Legislative Information
Referred to Com. on REV. & TAX.
2026-01-21 California Legislative Information
From printer. May be heard in committee February 20.
2026-01-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1611, as amended, Haney.
Taxation: capital gains and losses: single-family rental homes.
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
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 XIII A of the California Constitution, and thus would require for passage the approval of
2
/
3
of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.

Current Bill Text

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