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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: About how much % is taxed from California State On Cancellation of Debt? Posted by Dond on May 08, 2008 at 4:25 PM In Reply to: About how much % is taxed from California State On Cancellation of Debt? posted by Geno on May 06, 2008 at 12:12 AM : As we all know the Mortgage Tax Relief covers the Federal level. However, we have California still pending on a mirrored bill called "S.B. No. 1055". I'm wondering what is the estimated % that will be taxed by State when someone decides to foreclose. I'm not looking at an exact amount, but a high estimate would be best. Thanks all in advance. Pull out your most recent California Income Tax return, along with a tax table. Look up your income in the tax table, then jot down the amount of tax. Now add $100 to your income and look up the tax again. If a $100 increase in income leads to a $10 increase in tax, your marginal tax rate is 10%, and any additional income from debt forgiveness will be taxed at that marginal rate. In the example, $100,000 of debt forgiveness would lead to an additional tax of $10,000. This method is an approximation, but it gives a pretty god estimate. Follow Ups: Re: About how much % is taxed from California State On Cancellation of Debt? Geno 4:41 PM, 05/08/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : As we all know the Mortgage Tax Relief covers the Federal level. However, we have California still pending on a mirrored bill called "S.B. No. 1055". I'm wondering what is the estimated % that will be taxed by State when someone decides to foreclose. I'm not looking at an exact amount, but a high estimate would be best. Thanks all in advance. : Pull out your most recent California Income Tax return, along with : a tax table. Look up your income in the tax table, then jot down the : amount of tax. Now add $100 to your income and look up the tax : again. If a $100 increase in income leads to a $10 increase in : tax, your marginal tax rate is 10%, and any additional income : from debt forgiveness will be taxed at that marginal rate. : In the example, $100,000 of debt forgiveness would lead to : an additional tax of $10,000. This method is an approximation, : but it gives a pretty god estimate. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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