April 1, 2014: Potential great news for individuals in foreclosure or facing a short sale.

A bipartisan bill, the EXPIRE Act, was introduced by the Senate Finance Committee. One major feature of the bill is the restoration of the exclusion of up to $2 million of discharged principal residence indebtedness from gross income under Internal Revenue Code Section 108.

THIS IS NOT YET LAW, but it’s significant that a bipartisan bill includes this.

There has also been recent positive movement in this area by the California Franchise Tax Board in the case of short sale discharges. Clients can call the office at 800-924-1040 ext 12 if they have questions in this area.