State May Not Grant Tax Break : Legislation: Law- makers are hesitant to match a proposed federal deduction for a loss on the sale of a home.

Federal lawmakers may be ready to grant a tax break to those who sell their homes at a loss, but California legislators--wary of reducing revenue--are unlikely to adopt a similar state proposal before them.

The bills on both the state and federal level will allow homeowners to list losses taken on a home sale as a personal tax deduction. The result would be a financial cushion that would be especially welcome in Southern California, where real estate prices have plunged after the boom days of the 1980s.

On the federal level, the measure has already passed the House and could reach the Senate in the next two weeks.

However, in Sacramento the equivalent bill has yet to escape the committee process, where it will probably remain for at least two more weeks. If the Senate Appropriations Committee does approve it, the bill would go to the Senate floor and, if approved, to the Assembly.

The bill’s sponsor, Sen. John R. Lewis (R-Orange), has said the proposed change is a fairness issue. He says it is unjust that homeowners are taxed for money they make on the sale of their home, but do not get a break when they weather a loss.

But an aide to Lewis said that the bill faces strong resistance from lawmakers who have frowned on revenue-cutting measures in tough budgetary times. The measure’s chances may be hurt by the lengthy list of other proposals on deck that would also eliminate revenue, he said.

“We’re not real optimistic that it’s going to make it out of committee,” the aide said.

The State Franchise Tax Board reports the change would cut state revenue by a projected $4 million in the fiscal year ending June 30, 1996, and then $7 million the following year and $11 million the next.

State lawmakers also may wait to see what Washington does. In April, a report issued by a state Senate committee suggested holding off on action until the federal legislature makes a decision on its proposal.

The state bill, like its federal counterpart, would allow homeowners to deduct sale losses as a capital loss, much the way they can for losses suffered from personal investments, such as mutual funds or stocks. The loss is first applied to capital gains on the year, with any remaining loss applying as a personal deduction.

The state bill would require the taxpayer to live 24 consecutive months in the residence before the sale, and it would apply to sales made after this July 1. It would also limit the deductible loss to $250,000, unlike the federal bill, which has no cap.

The bills on both levels would allow taxpayers to deduct from personal income no more than $3,000 in any given year, with any remaining loss counting toward future income.

Under the federal measure, which passed the House as part of the Republican’s “contract with America,” sellers who make money on the sale of their house also would be given a tax break. The proposed change would be taxed, in effect, on only half of the profit.