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 received by a qualified taxpayer as a result of the sale or exchange of certain real property. The bill would define “qualified taxpayer” to mean an individual who is 65 years of age or older and who has owned the real property for 20 years or more.

This bill would take effect immediately as a tax levy.