BILL NUMBER: SJR 20	CHAPTERED
	BILL TEXT

	RESOLUTION CHAPTER  57
	FILED WITH SECRETARY OF STATE  JULY 7, 2010
	ADOPTED IN SENATE  MAY 24, 2010
	ADOPTED IN ASSEMBLY  JULY 1, 2010
	AMENDED IN SENATE  MAY 5, 2010

INTRODUCED BY   Senator Alquist

                        JANUARY 25, 2010

   Relative to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 20, Alquist. Taxation: sale of principal residence: senior
citizens.
   Under existing law, capital gains taxes are imposed upon the sale
of capital assets.
   This bill would memorialize the Congress and the President to
enact legislation that would increase the amount of gain that a
senior citizen 65 years of age and older and who pays for long-term
care costs is allowed to exclude from income, from $250,000 to
$500,000, and from $500,000 to $750,000 for joint returns, from the
sale of the qualifying principal residence of the senior citizen.




   WHEREAS, Federal income tax laws impose capital gains taxes upon
the sale of capital assets; and
   WHEREAS, A taxpayer is allowed to exclude from income up to
$250,000, or $500,000 for joint returns, of gain from the sale of a
qualifying principal residence; and
   WHEREAS, Seniors are subject to capital gains taxes on the sale of
their home even if they move to assisted living units, where they
may be subject to heavy upfront fees; and
   WHEREAS, Many seniors pay for long-term care costs including, but
not limited to, long-term care insurance premiums, entrance fees to
assisted living facilities, continuing care retirement communities,
and senior congregate living facilities, and make investments that,
in the future would be used by the senior to pay for long-term care
costs including, but not limited to, geriatric care management, home
health care, home and community based services, or institutionalized
care; and
   WHEREAS, The death of a spouse creates a disparity in tax
treatment in that an elderly couple is required to pay capital gains
taxes upon the sale of their home but a surviving partner can reduce
his or her capital gains by virtue of a stepped up basis in computing
capital gains that is allowed upon the death of his or her spouse;
now, therefore, be it
   Resolved by the Senate and the Assembly of the State of
California, jointly, That the Legislature respectfully requests
Congress and the President to enact legislation to increase the
amount of gain that a senior citizen who is 65 years of age and older
and who pays for long-term care costs is allowed to exclude from
income, from $250,000 to $500,000, and from $500,000 to $750,000 for
joint returns, from the sale of the qualifying principal residence of
the senior citizen; and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the President and Vice President of the United States,
to the Speaker of the House of Representatives, to the Majority
Leader of the Senate, and to each Senator and Representative from
California in the Congress of the United States.