The U.S. House of Representatives has passed the Federal Disaster Tax Relief Act by a vote of 382 to 7. The legislation is a standalone bill carved out from the broader Tax Relief for American Families and Workers Act, which passed the House last January but has stalled in the U.S. Senate. Among other things, the new bill would exclude from gross income, for tax purposes, any compensation received for losses, damages, and expenses incurred due to certain federally declared disasters. It also would extend special rules for deductibility of certain personal casualty losses. The tax relief would be in effect from 2020 through 2025. The bill’s fate remains uncertain in the Senate.
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