Southland homeowners who lost their homes to foreclosure may soon get a break on their taxes under legislation co-authored by Assemblymember Anthony Portantino (D-La Cañada Flintridge) and passed today by the Assembly. SB 401 (Wolk) will exempt California homeowners from having to pay taxes if they short-sold their homes or received a "benefit" from having their home foreclosed.
"We hope the Governor will sign this bill as soon as possible to provide some relief for homeowners in our district who are struggling with large tax bills as a result of losing their homes," stated Assemblymember Portantino. "We don't want to penalize these former homeowners a second time; we want to help them get back on their feet. Federal law already excludes "forgiven debt" from taxable income and we want to do the same for Californians."
Assemblymember Portantino also expressed hope that the Governor would sign the bill before the April 15 deadline for filing taxes.
This bill brings California into conformity on a host of other technical issues including tax incentives to create 'green' jobs through renewable energy projects waiting to break ground.