Check this out…according to Sacremento Bee (april 9, 2010)…The Governator is going to sign SB 401 as soon as this week.

SB 401 is “lock step” in line with IRS Mortgage Debt Relief Act of 2007 forgiving any tax liabilities afforded Californians that took advantage of a Short Sale in 2009. 

Who is affected:

• Those who Short Sold or will Short Sale their homes from 2009 to 2012.

What Do You Have to Do to Participate?:

• According to the Sacramento Bee…Nothing!If you qualify for the IRS Mortgage Debt Relief Act…then you qualify for SB 401.

What Californians Should do when filing their taxes?

• The Franchise Tax Board says: “Once the governor signs this into law, California taxpayers will not have to do anything. If they qualify for federal relief on the mortgage debt forgiven, then they will also qualify for state income tax purposes. California Form 540 starts with federal adjusted gross income so there will be no adjustment necessary to properly reflect the state adjusted gross income amount for this issue.”

  Read more: http://www.sacbee.com/2010/04/09/2666095/california-wont-tax-forgiven-home.html#ixzz0kuN6nZxH

This is great news for all of us using Short Sales to solves America’s Housing Troubles!

More to come…

Best,

Kris