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.
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