CA Preparers

[JG EA]

I have a client that "gave back" a second home in CA in 2011. He received a 1099C. I'm assuming that it is taxable because it seems to show up on the CA return, but when I look on the CA Franchise site I keep running into a change of law that shows they could exclude it now whereas they had to report it before. But it seems like this might be speaking of special cases.

Anyway, this is recourse (a refi amount on the second home) and it is taxable on the 1040. But the sale is a personal loss. Non-resident.

Any help would be appreciated to point me in the right direction.

[DTS]

Jg

What I can help you with is around May '10 CA finally conformed with the IRS. I had a client that was going to owe the state around $30k, so we filed the 1040 and waited to see if CA would conform, as rumored, and they did. I have not dealt with this state issue since.

[JG EA]

So, what does that mean? Conformed you mean it is taxable in CA if it is for Fed?

[S T]

Ca Conformity Mortgage Debt Relief

It was around April 2010 to extend debt foregiveness for years 2009-2012, but only for Principal Residence, and the limits will still differ from the Federal Limits.
Here is the Press Release https://www.ftb.ca.gov/aboutFTB/pres...lease_22.shtml

Also a Jan 2011 notice https://www.ftb.ca.gov/aboutFTB/news...lief_Law.shtml see section Property other than principal residence

Sandy

[JG EA]

It was around April 2010 to extend debt foregiveness for years 2009-2012, but only for Principal Residence, and the limits will still differ from the Federal Limits.
Here is the Press Release https://www.ftb.ca.gov/aboutFTB/pres...lease_22.shtml

Also a Jan 2011 notice https://www.ftb.ca.gov/aboutFTB/news...lief_Law.shtml see section Property other than principal residence

Sandy

Perfect! Thank you,