Our community has been deeply impacted by the recent wildfires, devastating homes, families, and businesses. We want to offer our hearts and deepest sympathies, as we see our neighbors and friends suffering from the impact of the LA fires.

We know that much of our clientele live in LA county so we want to help give you the information and support you need in regards to the impact of the LA fires on the 2025 tax season.

State of Emergency

Many of the LA fires started in the first week of January, quickly spreading and turning into some of the most destructive and deadly fires in California history. The Palisades fire began January 7, 2025, quickly jumping up to 5,000 acres within the first few hours. Governor Gavin Newsom announced a State of Emergency for California that same day.

A couple days later, former President Biden approved the Presidential Major Disaster Declaration, which increased the federal funding to be able to help support California’s fire management, debris removal, and emergency response costs. This declaration also includes Individual Assistance programs for citizens and businesses impacted by the LA fires.

On January 13, Governor Newsom had also extended the deadline for sales and use tax filing from January 31, 2025 to April 30, 2025.

On January 25, 2025, the IRS announced that anyone living in Los Angeles county would be offered tax relief for the 2025 year. This includes an extension for filing for taxes, automatic relief for individuals and businesses located in Los Angeles County.

Tax Relief

For Los Angeles County permanent residents, there is now a postponement until October 15, 2025 to file for 2024 taxes. This includes:

• Individuals whose tax returns and payments are normally due on April 15, 2025.
• Quarterly estimated tax payments normally due on January 15, April 15, June 15, and September 15, 2025.
• Business entities whose corporate or pass-through entity tax returns are normally due on March 15 and April 15, 2025.
• Pass-through entity (PTE) elective tax payments normally due on March 15 and June 15, 2025.
• Tax-exempt organization returns normally due on May 15, 2025.

Los Angeles Major Karen Bass has also announced that the deadline for filing City business taxes has been extended for businesses impacted by the LA fires. The new deadline for businesses is April 14, 2025 rather than February 28, 2025. 

Deductions

Taxpayers who experienced fire-related casualty losses are able to claim these on their federal income tax return, either for the 2024 or 2025 year tax returns. They are able to claim losses for 2024 taxes as a loss in income. These deductions should be thoughtfully considered, as they cannot be claimed if any casualty losses are set up to be reimbursed, either through insurance or litigation proceeds. If someone gets a casualty loss reimbursed, this reimbursement will be treated as ordinary income.

For property taxes, taxpayers may have a deferral on payment and monetary relief for property taxes that have already been paid and future property taxes, if property has been damaged or destroyed. 

How GSR Can Help

As a business in Los Angeles county, we at Golub, Senitt, Rosenberg & Co. know how deeply the LA fires have impacted our community, homes, and businesses. As a company that values building personal relationships with our customers, we want you to feel valued, seen, and cared for during this season. We have experience working with both individuals and businesses, so we are prepared to assist with any of your tax needs or concerns.

Taxes can already be confusing, but if you have been impacted by the LA fires, we want to do our part to prevent overwhelm. We are ready to answer any questions that you may have and provide you with substantial guidance. Our CPAs have the expertise and knowledge to navigate the details of the assistance programs, including the deferrals, postponements, and relief options. At GSR, we are committed to helping you get the most out of your taxes and take advantage of all of the programs available that may be of benefit to you.

Reach out to us to find out how we can come alongside you and best support you this time.

While most tax reduction tips are utilized prior to January 1st, if the New Year has come and gone, that doesn’t mean that your tax bill is set in stone. There are still some things that you can do to lower your taxes, save money when preparing your tax return, and avoid tax penalties. 

Here are some tax tips that individuals can utilize after January 1st that may help lower your taxes and potentially save on tax preparation. Let’s get into it. 

#1. File And Pay On Time

Or file an extension on time if you need a bit more time to get your things in order. It may seem like a no-brainer, but by filing your tax return by the deadline and paying anything you may owe, you can avoid penalties and fines, which keeps you from spending more than you otherwise would.

#2. Organize Your Records

One of the biggest hassles people face come tax season is getting all of their documentation in order. Organizing your records makes when it comes time to file easier. This includes things like your tax-related documents, such as W-2s and 1099s, prices paid for stocks or funds you sold, details on income from rental properties, and more. 

#3. Itemize Your Tax Deductions

In some cases, the standard deduction will be more than your itemized deductions – but not always. Many people find it easier to just take the standard deduction, but itemizing your deductions can be worth it if your qualified expenses add up to more than that. 

Many such deductions are well-known, such as for mortgage interest, charitable donations, and medical expenses that exceed a certain percentage of your adjusted gross income. A CPA can help you find all deductions you quality for, including ones you may not have been aware of. 

#4. Contribute To Retirement Accounts

Contributing to your retirement accounts by the tax return filing due date can help to lower your tax bill. You can contribute to an IRA all the way up until Tax Day, and still deduct the eligible amount from your taxable income from the previous year.

It’s important to work with a tax professional in order to ensure that all qualifications are met, as there are factors that affect eligibility for this. The amount you save for making contributions also varies depending on contributions, tax bracket, and number of years the money has been invested.

#5. Hire A CPA

The best tax tip that you can utilize, regardless of the time of the year, is to hire a CPA to help you with your taxes. Taxes can be very complicated, and tax law is ever-changing. Many individuals worry about doing their taxes wrong and getting into trouble with the IRS. 

When you hire a CPA to help you with your taxes, you can rest assured that you’re working with an experienced professional who stays on top of any and all tax changes. That way, you can know your taxes are filed properly. While it’s true that you have to pay a CPA for their services, the peace of mind said services can bring is priceless. 

Professional Tax Preparation For Individuals And Businesses

Golub, Senitt, Rosenberg & Co’s experienced CPAs provide the professional tax preparation services you need to preserve your peace of mind. Whether you’re an individual or you need help with your business’s taxes, rest assured that we’ll ensure the process is completely as smoothly as possible. By working with a CPA, you can relax knowing that your tax return will be accurate and compliant with any changes in tax law. 

Contact us today to schedule a consultation. Whether you need tax help or assistance with another one of our CPA services, such as fractional CFO work or controllership, we look forward to hearing from you.