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AB-1611 • 2026

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

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
2026-04-21
Official status
Re-referred to Com. on REV. & TAX.
Effective date
Not listed

Plain English Breakdown

The official summary does not provide specific details on how much tax will be paid on gains from selling rental homes, leaving this as an unknown.

Tax Rules for Rental Homes

AB-1611 changes California's tax rules to require people who own at least 50 single-family rental homes to pay taxes on gains from selling these properties if the sale occurs on or after January 1, 2026.

What This Bill Does

  • Changes the way capital gains are taxed when someone sells a single-family rental home in California.
  • Requires taxpayers with 50 or more single-family rental homes to pay tax on any profit made from selling one of their rental homes if the sale occurs on or after January 1, 2026.

Who It Names or Affects

  • People who own and sell single-family rental homes in California.
  • Taxpayers with at least 50 single-family rental properties.

Terms To Know

Capital gains
The profit made from selling an asset, like a home or stock, for more than it was bought for.
Taxpayer
A person who pays taxes to the government.

Limits and Unknowns

  • Does not specify how much tax will be paid on gains from selling rental homes.
  • Requires a two-thirds majority vote in both houses of the California Legislature for approval.

Bill History

  1. 2026-04-21 California Legislative Information

    Re-referred to Com. on REV. & TAX.

  2. 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.

  3. 2026-04-06 California Legislative Information

    In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  4. 2026-03-02 California Legislative Information

    Referred to Com. on REV. & TAX.

  5. 2026-01-21 California Legislative Information

    From printer. May be heard in committee February 20.

  6. 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

Read the full stored bill text 
Download Bill PDF