Legislature, governor come to agreement on ’short sales’
BRIAN JOSEPH, Sacramento Correspondent for the Orange County Register
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With just seven days until Tax Day on April 15, the State Legislature and governor finally have an agreement on a bill to provide tax relief for short sales.
Both houses of the Legislature today passed Senate Bill 401 by Sen. Lois Wolk, D-Davis, which provides tax relief for mortgage debt forgiveness for tax years 2009 through 2013. Just moments ago, Gov. Arnold Schwarzenegger’s staff told the Orange County Register that he will sign the legislation.
If you’re one of the thousands of Californians who sold your home at a loss in what is commonly known as a short sale, that would have put you on the hook for a big tax bill come April 15 — even though you no longer own your home.
Real Estate Dispatch 