Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Watch Live

Quality of Life

California Offers Tax Relief On Short Sales Of Homes

The IRS recently announced it will not tax people who short sell their homes at the full market rate of the property. The State Board of Equalization says California is following suit, which, the agency says, should be welcome relief to struggling homeowners.

“They were going to end up having to declare income for money that was never really there for them,” says Board of Equalization member George Runner. “People are now not going to have to pay taxes on phantom income because of a short sale.”

Earlier this year, a bill that would have extended state tax relief to short selling homeowners stalled in the legislature. Short sales had become an increasingly popular way for home owners, who owe more than their properties are worth, to avoid foreclosure.

Fact-based local news is essential

KPBS keeps you informed with local stories you need to know about — with no paywall. Our news is free for everyone because people like you help fund it.

Support local independent journalism now.