Indeed. But what about one time sale of primary residence? Am I hallucinating?
It’s my understanding that only the first half-million “or so” is tax-free.
If they get another home, they can avoid taxes on that part and if they file proper papers in CA they can transfer their old basis to pay less property taxes since they are over 55.
All this is my opinion from what I think I read or know, could be Gospel, maybe it isn't, I would suggest they do their own investigation.