CA lawmakers want an additional 25% cap gains tax for flippers

[Gene Hacker]

I am not sure how likely this is to pass but it is worth watching for anyone that invests in California or may wish to invest in California in the future. 

Basically, it looks like it is meant to target anyone buying and selling single family homes that they hold for less than 7 years.  

It is also worth noting that the additional tax would even apply to exchanges so it looks like 1031 exchanges would not offer protection from this new tax. 

Bill Text - AB-1771 The California Housing Speculation Act: income taxes: capital gains: sale or exchange of qualified asset: housing.

[Tristan Gardner]

Goodness.. I see why some many people choose other markets outside of CA.