California Mortgage Debt Relief Extended

Based on the passage of SB 401 on April 12, 2010, California now allows taxpayers who had all or part of the loan balance on their principal residence forgiven by their lender to exclude the forgiven debt from California gross income.  The new law now conforms, with modifications, to the federal mortgage forgiveness debt relief for discharges through tax years 2007 through 2012.

More information about the modified law is contained here.