Posted by & filed under Short Sales, Stockton Real Estate.

Senate Bill 401 has been enacted into law. The new California state income tax on debt forgiven in a short sale, foreclosure, or loan modification will be treated much like the federal law up through 2012. The existing federal exemption allows $2 million, and the new California exemption allows for $800,000 and forgiven debt up to $500,000.

For more information go to Mortgage Forgiveness Debt Relief ExtendedMortgage Forgiveness Debt Relief Act and Debt

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