New Law Helps Homeowners

Enacted yesterday by the state of California, Senate bill 401 offers relief to distressed homeowners by eliminating state tax on forgiven debt. This is valuable information for homeowners being faced with a possible short sale on their home.

Both the federal and state governments are offering tax credits for Californians purchasing new property.  Federal law offers up to $8,000 for first-time homebuyers and $6,500 for long-time residents.  California law offers up to $10,000 for first-time homebuyers or buyers of properties that have never been occupied.

Please review the Home buyers Tax Credit Chart 2010 click here (PDF file–Adobe Acrobat Reader Required**)

To explore more details about this bill, read the full Press release from Governor Schwarzenegger’s Office