Is there any California law that over rides a federal law?

In general Calif. Complies with the Federal on the 1099 C with some exceptions,none of which I could find related to your scenario I am a bit puzzled how you had a b/k effective in March 2010 and in April received a sizeable check that you bought another property but by Sept. Another was foreclosed on?

Since I am unable to find anything related to your determination of basis, I suggest you contact Spidell located in Orange Co who is an absolute expert on Calif. Situations I am using CCH Calif. Taxes for 2010 and this question is not addressed there.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.