Here is the seventh installment of a mini-series about the new California laws for 2009 affecting Realtors® with licenses in California.

The new law states that starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent. Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012. Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000. Moreover, the California law only applies to a debt discharged in 2007 or 2008. Senate Bill 1055.

Interested in the other new California laws enacted for 2009?  Click here for the first, second, third, fourth,  fifth & sixth installments of the mini-series.

Copyright © 2008 Susan Laxson. All Rights Reserved. "New 2009 Laws Affecting California Realtors® - Exemption from State Income Tax".  Information from sources deemed reliable, but not guaranteed.