Even though you may have already submitted your taxes for 2009 you may be able to save even more on your California state taxes if you received a 1099 as a result of a Short Sale.

Yet another positive effort by California legislators to help the housing market with this new bill. The Sacramento Bee reports on this effort to get this bill into law before April 15th deadline.

“The bill being considered this week, Senate Bill 401, would cancel state tax obligations for forgiven mortgage debt through the 2012 tax year. The Assembly planned Monday to rewrite SB 401 from a bill regarding tax shelters to one that aligns much of California’s tax law with that of the IRS. That includes canceling taxes on forgiven mortgage debt and on recipients of federal renewable energy grants.”

Read more: http://www.sacbee.com/2010/04/06/2657410/california-expected-to-cancel.html#ixzz0kMw5Xs6U