On Aug. 7, the U.S. Senate passed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act. Once the President signs it into law, recipients of qualified wildfire relief will be able to exclude the payments from their taxable gross income. Qualified payments cover wildfire-related losses, expenses and damages. This tax relief will be available for disasters declared in 2015 through 2026, regardless of when the payments are received. The law will also allow individuals with qualified net disaster losses in federally declared zones to deduct the net amount of personal casualty loss. This provision will apply to disasters starting Dec. 28, 2019, through Dec. 31, 2026. Contact us for details.
