This is not a short sale. It is a Cancellation of Debt for a second mortgage. Does the state of CA tax this amount? I cannot find anything on CA Franchise Tax Board that clearly helps.
Nothing related to Federal 1040 Line 21 income on the California Schedule CA includes exclusion of that specific debt cancellation.
Looking further at the more comprehensive CA FTB publication 1001
https://www.ftb.ca.gov/forms/2015/15_1001.pdf
page 13 specifically discusses reporting of cancellation of debt on the disposition of your primary residence.
Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2022 Intuit, Inc. All rights reserved.
Intuit,
QuickBooks, QB, TurboTax, ProConnect, and Mint are registered
trademarks
of Intuit Inc. Terms and conditions, features, support, pricing,
and service options
subject to change without notice.
Security
Certification of the TurboTax Online application has been
performed by
C-Level Security.
By accessing and using this page you
agree to the
Terms of Use.
Accessibility
