California canceled debt addback in ProConnect (Form 1099-C)

This article will assist you with understanding the CA Mortgage Forgiveness Debt Relief (Mortgage Debt Exclusion) instructions and process in Lacerte.

Per the FTB Instructions for Schedule CA (540):

Mortgage forgiveness debt relief. California law does not conform to federal law regarding the exclusion of income from discharge of indebtedness from the disposition of your principal residence occurring after December 31, 2017. Enter the amount of discharge on line 8f, column C.

Refer to the FTB Mortage forgiveness debt relief article for more information.