California AB1611 modifies tax treatment for exchanges of single-family rental homes.

California AB1611 amends the Revenue and Taxation Code to exclude certain property exchanges from the federal tax code's Section 1031, which defers capital gains tax. Specifically, it applies to exchanges completed after January 1, 2026, for taxable years starting after that date. The exclusion applies if the taxpayer owns 50 or more qualified properties at the time of the exchange.

California AB1611 modifies tax treatment for exchanges of single-family rental homes.

California AB1611 amends the Revenue and Taxation Code to exclude certain property exchanges from the federal tax code's Section 1031, which defers capital gains tax. Specifically, it applies to exchanges completed after January 1, 2026, for taxable years starting after that date. The exclusion applies if the taxpayer owns 50 or more qualified properties at the time of the exchange.