CA Tax Exemption to Match Federal Extension

In an effort to conform state law to a federal law passed last week that extended mortgage debt forgiveness, C.A.R. is sponsoring Senate Bill 30, so that California homeowners on the brink of foreclosure can get much-needed debt relief.

SB 30 (Calderon, D-Montebello) will for one more year exempt the taxation of mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification (including any principal reduction).

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