Exhibit 99.2
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Press Release

                  CAPITAL ALLIANCE INCOME TRUST FILES FORM 8-K
                       TO REPORT WITHDRAWAL OF AUDITING FIRM


SAN FRANCISCO - (BUSINESS WIRE) - May 27, 2005 - Capital Alliance Income Trust
Ltd. ("CAIT") (AMEX: CAA-news) today announced a Form 8-K filing with the
Securities and Exchange Commission, in connection with the withdrawal of its
former auditors, Novogradac & Company LLP ("Novogradac"). Novogradac advised the
company of its withdrawal as the company's auditor because of a decision to
cease providing services to SEC registrants, as a result of the public
accounting environment surrounding the SEC registrants, and the added
requirements and cost imposed by the SEC, the Sarbanes-Oxley Act of 2002, and
the PCAOB outweigh the benefits realized in serving CAIT, the former auditors
only SEC-registered client.

Richard Wrensen, CAIT's Executive Vice President and Chief Financial Officer
stated, "We know that a change in auditors raises concerns and we understand
those concerns. Therefore, we want to emphasize that there are no disagreements
between CAIT's management and its former accountant on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure and that the process of engaging new independent auditors is actively
underway.

On another matter, the Board of Directors did not reach a decision on the second
quarter's Common share dividend and the May Preferred share dividend.

CAIT is a specialty residential lender, which invests in conforming and
high-yielding, non-conforming residential mortgage loans on
one-to-four-unit-residential properties located primarily in California and
other western states. Only residential loans with a combined loan-to-value of
75% or less are retained in CAIT's portfolio of mortgage investments.

This document contains "forward-looking statements" (within the meaning of the
Private Securities Litigation Reform Act of 1995) that inherently involve risks
and uncertainties. CAIT's actual results and liquidity may differ materially
from those anticipated in these forward-looking statements because of changes in
the level and composition of CAIT's investments and unforeseen factors. As
discussed in CAIT's filings with the Securities and Exchange Commission, these
factors may include, but are not limited to, changes in general economic
conditions, the availability of suitable investments, fluctuations in and market
expectations for fluctuations in interest rates and levels of mortgage
prepayments, deterioration in credit quality and ratings, the effectiveness of
risk management strategies, the impact of leverage, the liquidity of secondary
markets and credit markets, increases in costs and other general competitive
factors.

Contact:      Capital Alliance Income Trust Ltd., San Francisco
              Richard J. Wrensen, Executive Vice President and CFO, 415/288-9575
              rwrensen@calliance.com
              www.calliance.com