AHLSTARZ Tax and Accounting Service -- Numbers, Simplified.

Legislation has been enacted to allow special corporation franchise and income, personal income, and property tax relief for losses sustained as a result of the wildfires that commenced in October or November 2008 in Los Angeles and Ventura Counties, November 2008 in Orange, Riverside, and San Bernardino Counties, and November 2008 or May 2009 in Santa Barbara County.

Income Tax Relief

Taxpayers who have sustained losses as a result of the wildfires may elect to file an amended corporation franchise or income tax or personal income tax return for the prior taxable year to deduct the disaster losses and reduce their prior year tax liability, and to obtain an expedited refund. In addition, taxpayers may carry forward any excess losses resulting from the wildfires for up to 15 taxable years.

Property Tax Relief

Any dwelling that qualified for the homeowner's property tax exemption prior to the commencement date of a designated wildfire, that was damaged or destroyed by the wildfire, and has not changed ownership since the commencement date of the wildfire, may not be denied the exemption solely on the basis that the dwelling was temporarily damaged or destroyed or being reconstructed by the owner, or temporarily uninhabited as a result of restricted access to the property due to the wildfire.

Ch. 299 (A.B. 1568), Laws 2009, effective January 1, 2010