Tax Relief Announced for California Wildfire Victims

Anya’s Market Bites:

The IRS and California Franchise Tax Board (FTB) have announced tax relief measures for individuals and businesses impacted by the recent wildfires in Southern California. This relief includes extended tax filing and payment deadlines, penalty waivers, and provisions for claiming disaster-related losses.

Key Highlights:

• Extended Deadlines:

  • Affected taxpayers have until October 15, 2025, to file various individual and business tax returns and make tax payments.

  • This applies to residents and businesses in Los Angeles County and any additional areas designated as disaster zones by FEMA.

• Taxes and Contributions Affected:

  • Individual income tax returns normally due on April 15, 2025.

  • Quarterly estimated tax payments due between January and September 2025.

  • Payroll and excise tax returns due in January, April, and July 2025.

  • Business tax filings, including S corporations, partnerships, and tax-exempt organizations.

• Penalty Waivers:

  • Late payroll and excise tax deposits due between January 7 and January 22, 2025, will not incur penalties if paid by January 22, 2025.

• Disaster Loss Deductions:

  • Taxpayers with uninsured or unreimbursed disaster-related losses can claim them on their 2024 or 2025 tax return.

  • Qualified disaster relief payments are excluded from gross income, covering essential expenses like home repairs and temporary housing.

• Who Qualifies?

  • The IRS automatically grants relief to taxpayers whose IRS address is in the designated disaster area.

  • Those outside the area but affected (e.g., lost records, assisting in relief efforts) can call the IRS at 866-562-5227 to request relief.

What This Means for Homeowners and Real Estate Investors

For property owners and investors, this tax relief offers breathing room to recover from losses, manage financial obligations, and rebuild properties without the immediate burden of tax deadlines. Those considering selling or rebuilding should consult with tax professionals to maximize available relief and deductions.

For more details, visit the IRS Tax Relief in Disaster Situations page.

(Source: Forbes)

All the best,

Anya Derebenskiy

(949) 942-5183

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