MarketPR
The Doug LaMalfa Federal Disaster Tax Relief Certainty Act cleared the Senate on Aug.
7 and now awaits President Donald Trump's signature, with the Congressional Budget Office estimating the bill will reduce federal revenue by $408 million between 2026 and 2036.
The legislation removes the income-based floor on individual disaster tax deductions and designates all wildfire relief payments as untaxable income, covering federally declared disasters from December 28, 2019, through July 4, 2025.
The income threshold on the table Current law restricts individual disaster deductions to taxpayers whose property damage from a federally declared disaster reaches at least 10% of their adjusted gross income.
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