CA back in allignment with IRS Cancellation of Debt - Forgiveness Act

The Governor has announced he will sign the speedily processed and amended CA debt relief act, helping people that have lost a home to foreclosure or short sales from having the cancellation of debt amount added and taxed along with their ordinary income. This puts California back in alignment with the IRS, it is also retroactive back to Jan 2009 when we moved away from the IRS policy. There is fine print, it doesn't cover every situation, so be sure to have YOUR tax preparer review your unique circumstances.

http://www.kcra.com/video/23096308/index.html

Good video for an over view of the process.