January 15, 2013
Two bills to extend the recently expired mortgage debt forgiveness program, aimed at providing relief for foreclosed-on homeowners, have been introduced in the new legislative session. The state exclusion expired on January 1, 2013.
Assembly Bill 42 (Perea) states the Legislature’s intent to conform state law to any federal extension on the exclusion from income taxation of the discharge of principal residence indebtedness. The exclusion was originally contained in the federal Mortgage Forgiveness Debt Relief Act of 2007
Senate Bill 30 (Calderon) would extend debt forgiveness provisions with regard to state income taxation regardless of any federal extension.