Bill Text: CA AB2358 | 2013-2014 | Regular Session | Introduced
Bill Title: Taxation: cancellation of indebtedness: mortgage debt forgiveness.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-04-28 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2358 Detail]
Download: California-2013-AB2358-Introduced.html
BILL NUMBER: AB 2358 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Harkey
FEBRUARY 21, 2014
An act to amend Section 17144.5 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2358, as introduced, Harkey. Taxation: cancellation of
indebtedness: mortgage debt forgiveness.
The Personal Income Tax Law conforms to specified provisions of
the federal Mortgage Forgiveness Debt Relief Act of 2007, relating to
the exclusion of the discharge of qualified principal residence
indebtedness, as defined, from a taxpayer's income if that debt is
discharged after January 1, 2007, and before January 1, 2010, as
provided. The federal Emergency Economic Stabilization Act of 2008
extended the operation of those provisions to debt that is discharged
before January 1, 2013.
This bill would extend the operation of the exclusion of the
discharge of qualified principal residence indebtedness to debt that
is discharged on or after January 1, 2013, and before January 1,
2014.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17144.5 of the Revenue and Taxation Code is
amended to read:
17144.5. (a) Section 108(a)(1)(E) of the Internal Revenue
Code, Code is modified to provide that
the amount excluded from gross income shall not exceed $500,000
($250,000 in the case of a married individual filing a separate
return).
(b) Section 108(h)(2) of the Internal Revenue Code, is modified by
substituting the phrase "(within the meaning of section 163(h)(3)
(B), applied by substituting '$800,000 ($400,000' for '$1,000,000
($500,000' in clause (ii) thereof)" for the phrase "(within the
meaning of section 163(h)(3)(B), applied by substituting '$2,000,000
($1,000,000' for '$1,000,000 ($500,000' in clause (ii) thereof)"
contained therein.
(c) The amendments made by Section 202 of the American Taxpayer
Relief Act of 2012 (Public Law 112-240) to Section 108 of the
Internal Revenue Code shall apply.
(c)
(d) This section shall apply to discharges of
indebtedness occurring on or after January 1, 2007, and,
notwithstanding any other law to the contrary, no penalties or
interest shall be due with respect to the discharge of qualified
principal residence indebtedness during the 2007 or 2009 taxable year
regardless of whether or not the taxpayer reports the discharge on
his or her return for the 2007 or 2009 taxable year.
(e) The amendments made to this section by the act adding this
subdivision shall apply to discharges occurring on or after January
1, 2013.
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
