GavelCalifornia SB30 was approved by the Senate to extend the state law protecting homeowners from having to pay income tax on a short sale but it was not passed.

Why – because SB30 has an amendment SB391 to the bill that impacts all homeowners/property owners by adding a recording tax to $75 per document for funding of an affordable housing trust fund.

Opposing SB 391 is California Association of Realtors along with county recorders, assessors and the title industry according to the article in Fort Mills Times.

The effect on short sales and foreclosures if SB 30 does not pass is any debt foregiveness after January 1, 2013 will be subject to California Income Tax. When the bill passes it will be retroactive back to the beginning of 2013.

Source: FortMillsTimes.com

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Filed under: Real Estate

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