| The housing crisis hit California hard over the last | | | | foreclosures, and short sales. This was a terrible |
| few years. With the economy and home values | | | | problem for many homeowners that were |
| plummeting, many home owners have found | | | | already struggling to make ends meet. |
| themselves in trouble. The good news is that the | | | | According to this act, California homeowners no |
| new Mortgage Relief Act may be a lifesaver for | | | | longer have to claim any amount of debt forgiven |
| many California residents. With any luck this will be | | | | by a bank as income. This will be the case |
| the break that Californians need in order to get | | | | through 2012. The limits are up to five hundred |
| back on their feet. | | | | thousand dollars and this applies to the primary |
| It was recently reported that the California | | | | residence only. |
| lawmakers have voted to enact the Mortgage | | | | If you have already filed your income tax it is not |
| Relief Act and not a moment too soon. The U. S. | | | | too late to file a corrected tax return and don't |
| Government led the way with relief legislation and | | | | miss out on this new legislation. Simply get an |
| California followed. When the housing crisis | | | | amended return form and submit it. These |
| happened, California was one of the most badly | | | | changes will be applied to your taxes for the year. |
| affected states. It is expected that over one | | | | Check with a tax preparer for details. |
| hundred thousand California homeowners will be | | | | California residents have suffered greatly from |
| helped by this new legislation. | | | | the housing crisis and economic downswing. The |
| What does this act do? Previously, California | | | | Mortgage Relief Act is exactly what these people |
| residents were taxed income tax for any amount | | | | need in order to have a chance to get back on |
| that was forgiven on their mortgage by the bank. | | | | their feet. This new legislation may be helpful to |
| This applied to mortgage adjustments, | | | | you. See the state website for details. |