Tax Relief Bill for Distressed California Homeowners Rejected
When the California real estate market took a downturn in 2007, the legislature responded by providing mortgage relief. Under this law, if a Californian sold a home where the amount of the loan was greater than the value and the lender agreed to forgive the debt, the amount forgiven was relieved from taxes. That tax relief expired in 2013. Since that time, Governor Brown has refused to renew the law. Recently, a proposal was made to extend that relief. But the bill was not sent to the Assembly floor and died.
-Shannon B. Jones, Partner, sbj@sbj-law.com