LEGISLATIVE COUNSEL'S DIGEST


SB 97, as amended, Calderon. Taxation: cancellation of
indebtedness: mortgage debt forgiveness.
The Personal Income Tax Law, in modified conformity to federal
income tax laws, requires a borrower to include in his or her income,
with certain exceptions, the amount of debt canceled or discharged,
as specified.
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, as
provided.
This bill would , in additional conformity to federal income
tax laws, extend the operation of those provisions to debt that
is discharged after January 1, 2007, and before January 1,
2010 2013, and would modify the amount
excluded from gross income.
This bill would also provide conformity to specified provisions of
the federal Emergency Economic Stabilization Act of 2008 relating to
the exclusion of the discharge of qualified principal residence
indebtedness, as defined, from a taxpayer's income if that debt is
discharged on or after January 1, 2009 , and before January 1,
2013 .
This bill would make legislative findings and declarations
regarding the public purpose served by the bill.
This bill would take effect immediately as a tax levy.