Good News for CA Homeowners
For the 2013 tax year the California FTB decided not to extend it’s debt forgiveness for principal residences, which meant that if your house went into foreclosure in 2013 the total amount of the cancelled debt was taxable. For many people this meant thousands and thousands of dollars owed to the State.
The good news is that the FTB has retroactively extended the mortgage debt forgiveness act on principal residences for any debt that is discharged before January 1, 2014. For California homeowners this means that if you already filed your 2013 tax return with “cancellation of debt” included in your taxable income you can now amend the return. If you haven’t yet filed, you can go ahead and do so without the threat of owing thousands of dollars to California.
If you found yourself in the above situation and would like to file your 2013 tax return or amend your 2013 return, please call us.