The devastating wildfires in Los Angeles have left many individuals and businesses facing financial and emotional hardship. If the situation affects you, you may qualify for tax relief to reduce the burden. Scout Tax is here to guide you through available benefits and ensure you maximize the assistance offered.
Natural disasters disrupt lives in unimaginable ways, causing loss of property, income, and financial security. In response, the IRS, the State of California, and the City of Los Angeles have implemented tax relief measures to help affected individuals and businesses recover. Below are some key tax benefits that wildfire victims in LA may be eligible for, along with detailed explanations of how to claim them.
Federal Tax Relief
Extended Tax Deadlines
The IRS has extended deadlines for affected taxpayers in Los Angeles County:
- Individuals and businesses now have until October 15, 2025, to file federal tax returns and make tax payments originally due between January 7 and October 15, 2025.
- This extension applies to income, payroll, and excise tax returns.
Claim a Casualty Loss Deduction
If you suffered property damage or loss due to the wildfires, you may be able to deduct these losses on your federal tax return:
- The Federal Disaster Tax Relief Act enhances these deductions, allowing victims to add their casualty losses to the standard deduction, removing the 10% adjusted gross income limit, and raising the minimum loss value that can be claimed.
- The IRS allows affected taxpayers to claim losses in the year they occurred or amend a prior year’s return to receive a faster refund.
- Proper documentation—such as photos, repair estimates, and insurance claims—is essential when filing.
California State Tax Relief
Extended State Tax Deadlines
The California Franchise Tax Board (FTB) has aligned with federal extensions, granting affected taxpayers until October 15, 2025, to file state tax returns and make payments.
Property Tax Relief
Property owners may qualify if wildfires damage or destroy their properties:
- This relief can include a reassessment of property values, potentially lowering property taxes.
City of Los Angeles Tax Relief
Business Tax Waiver
- Mayor Karen Bass issued an Emergency Executive Order waiving the 2025 business taxes for businesses impacted by the fires.
- The Office of Finance is drafting an ordinance to implement this waiver.
Extended Business Tax Renewal Deadline
- The annual Los Angeles City Business Tax filing deadline has been extended from February 28, 2025, to April 14, 2025, for businesses affected by the wildfires, particularly those in specific ZIP codes.
Tax Relief for Destroyed or Disrupted Businesses
- Businesses whose locations were destroyed or severely disrupted for at least 45 days due to the wildfires may qualify for the city’s business tax relief program.
- This includes home-based businesses where the home was destroyed.
Steps to Take to Claim Your Benefits
- Determine Your Eligibility: Check if the federal or state government designates your area as a disaster zone. The IRS, FEMA, and California FTB provide official lists of affected regions.
- Gather Documentation: Keep thorough records of property damage, loss of income, and expenses related to the disaster. Photographs, receipts, and insurance claims are essential for substantiating your claims.
- Seek Professional Assistance: Navigating tax relief claims can be complex. Scout Tax is here to ensure you don’t miss out on any available benefits and help streamline the process.
Let Scout Tax Help You Navigate Relief Options
Dealing with the aftermath of a disaster is overwhelming, and tax-related matters can add to the stress. Scout Tax is here to provide expert guidance and support, ensuring you take full advantage of the tax relief available to you.
We understand that tax laws often create confusion, and missing eligible relief can cost you valuable financial assistance. That’s why our team works hard to help you claim every benefit you deserve.
If the LA wildfires affect you or someone you know, don’t wait to seek assistance. Scout Tax specializes in tax relief for disaster victims and actively helps individuals and businesses rebuild after adversity. Don’t navigate this alone—reach out to Scout Tax today for professional assistance in maximizing your tax benefits and easing your financial recovery.
