Schwarzenegger signs Short Sale Bill SB401- Forgives CA Taxes on Short Sales

Mortgage Forgiveness Debt Relief

Governor Arnold Schwarzenegger has signed CA Senate Bill 401 into law, which conforms California tax law with Federal tax law on debt forgiveness from short sales and foreclosures on a primary residence.Governor Schwarzenegger made the following the statement:“”This legislation is a great example of what we can accomplish when we work together to solve problems that affect Californians, and I applaud Senator Lois Wolk, Senator Ron Calderon, Assembly member V. Manuel Perez and Assembly member Anthony Portantino for their work. It is important that we continue to provide all possible assistance to homeowners who were negatively impacted by the mortgage crisis, and this bill will provide them with necessary mortgage debt relief and protect them from thousands of dollars in unfair taxes,” said Governor Schwarzenegger. “SB 401 will also help promote the growth of renewable energy projects in California by providing tax assistance to businesses to get their projects of the ground, which is good news for our economy.”