Qualified Disaster Personal Casualty Loss Deduction Extension
Current understanding
The Doug LaMalfa Federal Disaster Tax Relief Certainty Act would extend the federal deduction (available in addition to the standard deduction, without the 10%-of-AGI floor) for qualified disaster-related personal casualty losses to incidents beginning before 2027, and would extend the gross-income exclusion for qualified wildfire relief payments to federal disasters declared after 2014 and before 2027. Sub-topic: disaster/casualty loss tax relief. Status: introduced; individuals in federally declared disaster areas would pay less federal income tax on casualty losses and wildfire relief payments if enacted.
Evidence log
- 2025-09-09 — Federal Disaster Tax Relief Act of 2025: cross-connection with federal-disaster-tax-relief-act-2025: Both address disaster-related tax relief; potential vehicle overlap on qualified disaster personal casualty loss treatment. (novelty: 2)
- 2026-01-08 — Disaster Zone Energy Affordability and Investment Act: cross-connection with disaster-zone-energy-investment-tax: Parallel disaster-zone tax relief proposals — casualty loss deductions vs. energy investment incentives. (novelty: 2)
- 2026-04-28 — Doug LaMalfa Federal Disaster Tax Relief Certainty Act: cross-connection with fire-victim-tax-relief-extension: Both extend the same 2026/2027 sunset for federal disaster tax relief; the LaMalfa Certainty Act bundles the wildfire payment exclusion (covered separately by S3372/HR7825) with the broader qualified disaster casualty loss deduction. (novelty: 2)