Bill Text: CA SB30 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Taxation: cancellation of indebtedness: mortgage debt forgiveness.

Spectrum: Slight Partisan Bill (Democrat 6-3)

Status: (Engrossed - Dead) 2013-08-30 - Set, second hearing. Held in committee and under submission. [SB30 Detail]

Download: California-2013-SB30-Amended.html

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BILL NUMBER: SB 30	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 6, 2013

INTRODUCED BY   Senator Calderon
    (   Principal coauthor:   Senator 
 Anderson   ) 
   (Coauthors: Senators Block, Correa,  Evans,   Fuller,
 Lieu, and Price)
    (   Coauthor:   Assembly Member  
Harkey   ) 

                        DECEMBER 3, 2012

   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


   SB 30, as amended, Calderon. 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 is
modified as follows:
   (1) 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).
   (2) By substituting the phrase "January 1, 2014" for the phrase
"January 1, 2013" contained therein.
   (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) 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. 
   (d) 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.