AB-2394 • 2026

Personal Income Tax Law: exclusions: real property.

Taxes

Passed Legislature

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

Sponsor: Lee
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.

Personal Income Tax Law: exclusions: real property.

AB 2394, as amended, Lee.

What This Bill Does

AB 2394, as amended, Lee.
Personal Income Tax Law: exclusions: real property.
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 amounts gain received by a qualified taxpayer as a result of the sale or exchange of certain real property.

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.
2026-03-09 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2394, as amended, Lee.
Personal Income Tax Law: exclusions: real property.
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
amounts
gain
received by a qualified taxpayer as a result of the sale or exchange of
certain real property.
qualified real property, as
defined.
The bill would define “qualified taxpayer” to mean an individual who is
65
55
years of age or older
and who has owned the real property for 20 years or more.
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.

Current Bill Text

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