LEGISLATIVE COUNSEL'S DIGEST


AB 111, as amended, Niello. Taxation: cancellation of
indebtedness: mortgage debt forgiveness. The Personal Income Tax Law
conforms to specified provisions of the federal Mortgage Forgiveness
Debt Relief Act of 2007, relating to the exclusion of the discharge
of qualified principal residence indebtedness, as defined, from a
taxpayer's income if that debt is discharged after January 1, 2007,
and before January 1, 2009 2010 , as
provided. The Emergency Economic Stabilization Act of 2008
extended the operation of those provisions to debt that is discharged
before January 1, 2013.
This bill would extend the operation of those provisions
to debt that is discharged after January 1, 2007, and before January
1, 2012 provide further conformity to those federal
acts, as provided .
This bill would take effect immediately as a tax levy.