Recent Developments in California

Principal residence foreclosures: Recent legislative action has resulted in no extension of the “cancellation of debt” exclusion associated with a principal residence.  Although Federal law allows for relief of this nature through 2013, no similar 2013 benefit applies in California.

Electronic filing expanded: The Franchise Tax Board will begin allowing for the electronic filing of Forms 541 beginning January 1, 2014, for the 2013 tax year.  Previously, only paper filings of these forms were permitted.