2009 California State Tax filing for 1099-c Loan Modification not short sale or Forclosure.
Salinas, CA |
Could 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?