No State of Calif. Tax on Forgiven Debt. Good News for San Diegans
April 14, 2010 by fgregory · Leave a Comment
NO MORE STATE TAX ON FORGIVEN DEBT
Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California’s tax treatment of mortgage debt relief income with federal law. For debt forgiven on [...]
