As California burns, Congress plans to slash tax write-offs for fires and other disasters

Source: LATimes




Sarah D. WireSarah D. WireContact Reporter


.........................The House tax bill entirely eliminates the deduction that allows people to claim uninsured losses after all types of disasters; the Senate version allows people to take the deduction only if the president declares a federal disaster.

So far this year, nearly 58,000 wildfires have burned more than 9 million acres in the U.S., according to the National Interagency Fire Center. Only a small number would qualify taxpayers for relief under the Senate bill.


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House Majority Leader Kevin McCarthy’s (R-Bakersfield) staff said the federal disaster version of the deduction is likely to be included in the final tax legislation as the House and Senate work to reconcile their bills over the next few weeks, but acknowledged there isn’t a long-term plan to allow people to deduct the uninsured costs of rebuilding from smaller disasters.

That means unless Congress decides to pass a tax exemption for each disaster, future victims will have to pay taxes on the personal costs of rebuilding or hope the incident is big enough to be declared a federal disaster. Americans deducted $1.6 billion in 2015 for uninsured losses in natural disasters that were not declared federal disasters, according to the Internal Revenue Service. (California figures were not available.)

The House tax bill does include a limited deduction for the victims of this year’s hurricanes in Texas and Florida, and even 2012’s Superstorm Sandy. But it leaves out relief for the victims of recent big fires, which Democrats have used to criticize their California colleagues.

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Read more: http://www.latimes.com/politics/la-pol-ca-congress-tax-fire-20171210-story.html

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So many things buried in the #trumptaxScam bill that affect us. damn


http://www.trbimg.com/img-5a2952ee/turbine/la-me-thomas-fire-photos-070/750/750x422
Thomas fire
Ventura County fire crews monitor backfires on the Thomas fire along Toland Road near Santa Paula. (Michael Owen Baker / For The Times)