Recently, the California Franchise Board spoke out about mortgage debt. George Runner, a member of the Board of Equalization, stated that if families have lost their house due to a short sale in California, then they would not be exposed to state income tax liability regarding phantom income in a short sale that they never received. The IRS recognized this, and therefore did not create cancellation of debt income to the seller for the purposed of federal income taxes.
This change assures underwater sellers that they will not be liable for state income taxes. Distressed home sellers should be ecstatic, for this will save thousands of people from debt written off by lenders relating to tax liabilities. This is great news for the citizens of California.
If you have any questions regarding insurance in the Irvine area, please contact the agents at one of the top real estate companies in California. The Barr Team at Complete Real Estate Solutions has been working for years to compile an experienced team of real estate agents, who are dedicated to helping you buy or sell at the absolute best price. Contact The Barr Team, today!