New Legislation Proposes Change in Tax Treatment for Investor Housing

Newly introduced, Assembly Bill 1611 (Haney) proposes a change in the tax-deferred exchange treatment of real property. 

The bill would prohibit the application the exchange deferral provisions of existing law to single-family residential rental real property where the taxpayer owns 50 or more single-family residential rental real properties at the time of the sale. The bill, which would take effect immediately as a tax levy, would apply to exchanges completed on or after January 1, 2026, for purposes of taxable years commencing on or after January 1, 2026.