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Asked over 3 years ago - Salinas, CA
FlagCould you please inform me aobut the Loan Modification 1099-c filing for California tax year 2009. We received a loan modification in late 2009 and received a 1099-c form to file with our taxes. I understand under the Mortgage Debt Forgiveness Relief Act we will not be required to claim it as incomed for Federal filing, however California presently does not have a bill in place to cancel that debt and instead is charging tax on it. It's my understanding that the state had a bill in place but it expired and/or was allowed to lapse. I was wondering if there is a new or revised draft of the bill before the Assembly or Senate vote for 2009/2010 filing?
Most questions get answered by a lawyer within a few hours.
Until then, the questions below might help you.
Please pass this info to all homeowners who lost their property either thru foreclosure or short sale in 2009. There is a new bill AB1779 (Introduced by CA Assembly Member Niello, February 9, 2010) which will be in assembly on March 12. All home owners who lost their property must contact their local assembly member and request them to support this bill. The objective of the bill is to extend the tax forgiveness in State of CA till Jan 01, 2013. If the bill fails thousands of home owners who lost their property in 2009 will end up paying tax to CA FTB for their cancellation of debt 1099C sent by their mortgage companies.
Website to find the local assembly member:
http://www.leginfo.ca.gov/yourleg.html
The pdf version of the BILL #: AB1779 can be found at the below location
http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab...
i have the same thing anyone have any answers yet on this?
not sure if it's the right way....here it goes.
If you fill out the 1099-c to carry over to 982 form. It will wipe out your Federal but not the State (CA). So this is what you could do.
report your 1099-c with out fill out the 1099-c form on your taxes, just put the info on the 982 form for Principal Residence indebtedness and it wipe out the Fed and State taxes completely.
Remember that your still reporting the info....with out getting taxed.
Hope this works because i'm tiered of this state picking at everything it could get it's hands on just to get out of the hole it's in.
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