Tax Deduction for Wildfire Loss davidbusby asked 2 years ago
Tax Deduction for Wildfire Loss

It’s tax time.

I was a victim of the River Fire in California on August 4, 2021.

FEMA id FM-5405-CA.

All the tax forms I found only include grant deductions when the id starts with DR or EM.

I thought the fire was a declared disaster. I guess not big enough to warrant a deduction.

Is there some form you can direct me to which will enable me to receive a deduction for my loss?

Thank you.

1 Answers
Answer for Tax Deduction for Wildfire Loss United Policyholders Staff answered 2 years ago

Dear David,

We’re very sorry for your loss.

Unfortunately the tax reformation passed in 2017 excluded all casualty losses unless they are part of a federally declared disaster (indicated by a DR number).

This means that a FEMA (“FM”) designation does not allow this deduction, if the loss was for personal use real estate.

We recommend that you read our publication, Tax Tips for Disaster Survivors and consult with a CPA or other tax professional to get advice on how to file your claim.

We wish you the best in getting the assistance you need. We are rooting for you!