Weeks ago, the state of California took a step in the right direction by passing a new measure for homeowners agreeing to short sales.  Under the new measure, homeowners would be granted tax relief if they chose to pursue short sales instead of allowing their properties to be foreclosed.  Throughout the state, thousands of homeowners are contending with foreclosure, making this new piece of legislation a great win.

The new bill, which will be signed by Governor Arnold Schwarzenegger, will “waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale,” reports the Los Angeles Times.  The Los Angeles Times says that the bill is expected to impact approximately 34,000 taxpayers in California.  Additionally, the new measure will allow $60 million in tax credits for companies in the green-energy industry.

While the Franchise Tax Board claims that new short sale tax break would generate $34 million less in revenue for the state of California, it is an important incentive that will greatly help homeowners who have been struggling with foreclosure and sky rocketing mortgages

According to state Senator Ron Calderon, “The mortgage-debt tax relief provision in this bill will provide financial shelter for tens of thousands of Californians who have lost their hopes and dreams in the housing market crash, and it’s about time we gave these folks a helping hand.”

At American Economic Solutions, we are absolutely thrilled about the passage of this new bill which will help those who homeowners who have been dealing with financial hardships for some time now.  With the economic times being so challenging, it is important that the government looks out for taxpayers who are losing their homes due to staggering unemployment rates and the greedy practices of mortgage lenders.  We hope that this tax incentive helps the many homeowners that need assistance so they can repair what damage has been done.

If want to learn more about this tax break, our short sale specialists are always more than willing to lend our insight.  Simply give us a call at 1-888-500-2632!

Read full story from the L.A. Times here: http://articles.latimes.com/2010/apr/09/local/la-me-tax-break9-2010apr09