Short Sale, Foreclosure and Strategic Default

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Saturday, October 11, 2008

SB 1055 California State Tax Relief for Mortgage Debt Forgiven : San Jose-Santa Clara County Real Estate UNCENSORED

SB 1055 California State Tax Relief for Mortgage Debt Forgiven : San Jose-Santa Clara County Real Estate UNCENSORED: "Californians, however, were not completely exempt from any tax liabilities incurred in a short sale or foreclosure because we are also subject to California state tax laws. In order to put California tax laws regarding mortgage debt forgiveness in line with the changes made by HR 3648 to federal tax laws, Gov. Arnold Schwarzenegger signed bill SB 1055 into law this past Thursday.

Though the Senate Bill 1055 now conforms to the federal Mortgage Forgiveness Debt Relief Act of 2007 (HR 3648), it has a difference that may need to be revised in the near future. SB 1055 will only cover discharges from January 1, 2007 to December 31, 2008 in contrast to HR 3648 which covers discharges from January 1, 2007 to December 31, 2009.

Homeowners who qualified and have already filed and included discharge of principal residence indebtedness as income for California purposes may need to file an amended or corrected state income tax form. Consult with a qualified CPA for specific details of your situation; this is not to be regarded as tax advice."

1 comment:

Business Insolvency said...

One thing you left out is you can first attempt to work with your credit card issuer to establish a lower interest rate and lower payments. You don't always have to go right to one of the debt management companies to negotiate a settlement.