Jan 22, 2025 | Casualty Gain, Exclusion of Taxable Gain, Federal Disaster Declaration, Insurance
If this is your first year preparing returns for clients with casualty gain/loss, you may be a bit overwhelmed (I know we certainly were in 2017 in the North Bay when we had thousands of clients lose their homes). We put together this guide to help you navigate the...
Jan 16, 2024 | Casualty Gain, Exclusion of Taxable Gain, Federal Disaster Declaration, PG&E Settlement
Congress has announced it has reached a budget deal that includes Federal tax relief for individuals who received settlement income related to wildfires. As of this writing, the bill has not passed yet, but assuming it does, The Tax Relief for American Families and...
Jul 11, 2022 | Casualty Gain, PG&E Settlement
On June 28th, the Commissioner of the IRS responded to a request by Congressman Mike Thompson and Congressman Doug LaMalfa requesting guidance on the taxability of the settlement funds received from the Fire Victims Trust (FVT). The IRS letter echoed articles you have...
Jan 27, 2021 | Casualty Gain, Exclusion of Taxable Gain, Federal Disaster Declaration
If this is your first year preparing returns for clients with casualty gain/loss, you may be a bit overwhelmed (I know we certainly were in 2017 when we had hundreds of clients lose their homes). We put together this guide to help you navigate the process. This tax...
Aug 24, 2020 | Casualty Gain, Casualty Loss Deduction, Federal Disaster Declaration, Insurance
As part of the Tax Cuts and Jobs Acts, casualty loss deductions were disallowed starting in 2018 unless the loss was incurred in a federally declared disaster area. Because of the Presidential Disaster Declaration made yesterday, victims of the August 2020 CA...
Nov 29, 2018 | Casualty Gain
Many victims of the California wildfires have been surprised to learn that they have a gain on the loss of their rental property in the California wildfires. When you lose your rental in a sudden and unexpected event like a wildfire, it is called a casualty. If the...