Tax News

CCH (cch.taxgroup.com) reports:

  For purposes of California corporation franchise and income, personal income, and property taxes, taxpayers affected by qualifying natural disasters during 2007 and 2008 will be given tax relief in the form of carrybacks or carryovers of specified losses and extension of property tax exemptions during a rebuilding process.

  For losses caused by the disasters in each of those years, qualifying taxpayers can elect to claim a corporation franchise or income tax or personal income tax deduction on the tax return for the preceding year. Excess disaster losses may be carried forward for 15 years. Persons whose homes were destroyed can retain the homeowners' exemption from property tax on their property while they are in the process of rebuilding.

  Qualifying disasters include:

  -- wildfires during the 2007 calendar year in Inyo, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura counties;

  -- strong winds on October 2007 in Riverside County;

  -- wildfires during May, June, or July 2008 in the counties of Butte, Kern, Mariposa, Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and Trinity;

  -- wildfires in July 2008 in Santa Barbara County;

  -- severe rainstorms, floods, landslides, or accumulation of debris on July 12, 2008, in Inyo County; and

  -- wildfires during May 2008 in Humboldt County.

Ch. 386 (S.B. 1064), Laws 2008, effective September 27, 2008.