California Distressed Homeowners Debt Tax Forgiveness - WHO Qualifies ?
If you are a Californian who went through a ShortSale , Foreclosure or Loan Modification , the State of California yesterday passed the long Mortgage Forgiveness Debt Relief legislation . Who and What Qualifies For The California Mortgage Forgiveness Tax Relief ? Debt can be forgiven by the State of California up to $500,000 for taxpayers who file as married/registered domestic partners (RDP) filing jointly, single, head of household, or widow/widower, and to $400,000 for taxpayers who file as married/RDP filing separately. Your total indebtedness limit is $800,000 for taxpayers who file as married/registered domestic partners (RDP) filing jointly, single, head of household, or widow/widower, and to $400,000 for taxpayers who file as married/RDP filing separately. The debt must be secured by a Qualified Principal Residence. The debt can include 1st & second mortgages. The indebtedness incurred in acquiring the property, in constructing the property or by su...