What the
Now the state is jumping on the debt forgiveness band wagon.
Thu, February 28, 2008 - 12:24 PM
A bill that would make it possible for California taxpayers to avoid paying taxes on forgiven mortgage debt through a short sale, short payoff or some other loan modification, recently passed a key senate committee.
Senate Bill (SB) 1055, authored by Sen. Michael J. Machado, passed the Senate Revenue and Taxation Committee on an 8-0 vote. The measure would help California taxpayers whose lenders have forgiven a portion of their mortgage debt, by allowing them to exclude the forgiven debt from their incomes for state income tax purposes. Under existing state tax law, forgiven debt on mortgages is taxable to the borrower as ordinary income for the year in which the debt is forgiven.
"SB 1055 an example of something the Legislature can do to help mitigate the pain that the mortgage crisis is causing," said Machado. "The last thing we want to do to a borrower who has just lost his or her home is hit them with a higher tax bill."
The measure is now before the full Senate.
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Thu, February 28, 2008 - 6:02 PM
Thank you for keeping us posted Razor......
Can you believe this shit??? People lose their homes, they are out on the street, have been struggling for who knows how long, and THEN they get taxed on the mortgage they never paid? How can they do that? It's not income to them, it's a debt they don't have to pay for property they don't own! Wrong, totally and completely and utterly wrong in EVERY way. I am astounded at the greed, truly astounded. |
