UNDERSTAND HOW TAXES
MAY APPLY TO YOUR
INSURANCE AND SDG&E RECOVERIES
RE: 2007 WILDFIRES

In a federally declared disaster, such as the 2007 San Diego Wildfires, special federal and state tax law provisions provide some tax relief for fire victims:

• PERSONAL PROPERTY RECOVERY EXEMPT FROM TAX
• AN ADDITIONAL $250,000 PER PERSON CAPITAL GAINS EXCLUSION
     IRS § 121 HOMEOWNER’S EXCLUSION
     MARRIED COUPLE FILING JOINTLY--$500,000
     SINGLE HOMEOWNER--$250,000
• DISASTER VICTIMS HAVE 4 YEARS FROM THE END OF THE YEAR IN WHICH THEY REALIZED GAIN TO PURCHASE OR REBUILD THEIR HOUSE. IRS § 1033(h)(1)(B)
• IF STILL INVOLVED IN A LAWSUIT AT THE END OF FOUR YEARS, IRS WILL GRANT AN EXTENSION IF ONE IS REQUESTED TIMELY
• REASONABLE TAX FILING EXTENSIONS ALLOWED

NOT SO GOOD NEWS, BELOW ARE TAXED AS ORDINARY INCOME AT HIGHEST RATE:

• EMOTIONAL DISTRESS
• PUNITIVE DAMAGES
• LOST WAGES
• LIVING EXPENSE SETTLEMENTS IN EXCESS OF ADDITIONAL LIVING EXPENSES INCURRED
  ADDITIONAL INFORMATION INCLUDED HERE

----------------------------------------------------------------------------------------------------

Tax information is provided by Ms. Anna Maria Galdieri, CPA.  Ms. Galdieri has been actively involved in disaster tax issues and reformation since the 1991 Oakland fire.  She is nationally known for her disaster tax expertise and consumer advocacy.  While general tax information is provided free on the CARe website, her private consultations are subject to her hourly fee of $350.  She recommends emailing your tax questions to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .