California’s mortgage forgiveness debt relief law

The California mortgage forgiveness debt relief law is effective immediately. It is similar to federal law, but there are important differences.

The California law covers qualified debt forgiven in 2007 and 2008, and it:

• Limits the amount of qualified principal residence indebtedness to:
• $800,000 for taxpayers who file as married/registered domestic partners (RDP) filing jointly, single, head of household, or widow/widower.
• $400,000 for taxpayers who file as married/RDP filing separately.

• Limits debt relief to:
• $250,000 for taxpayers who file as married/RDP filing jointly, single, head of household, or widow/widower.
• $125,000 for taxpayers who file as married/RDP filing separately.

For more information, go to our website and search for mortgage forgiveness.

 

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