California wasnâ€™t as generousâ€¦
From a tax exposure standpoint, I'd speak to a CPA about your personal situation. But one factor that people sometimes miss when discussing it, for owner occupied homes, there is a $250K/$500K capital exclusions when you sell your personal residence...so sometimes even when there's a tax consequences for writing off the loan, there's no real tax payment owed.....check with your CPA. Ed Cook at (916) 705-4958 is really good, if you needed one. On a rental? there's just too many factors to figure out here.