President Trump has signed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act. Among other things, it expands personal deductions for disaster-related losses. Previously, victims of a federally declared disaster could deduct personal casualty losses only if they itemized, and only to the extent those losses exceeded 10% of their adjusted gross income (AGI). The new law allows eligible disaster victims (for disasters starting Dec. 28, 2019, through Dec. 31, 2026) to deduct qualified losses above $500 without itemizing and removes the 10% of AGI threshold for those losses. The law also excludes qualified wildfire relief payments from taxable gross income. Contact us for details
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