Tax,
Insurance
Aug. 18, 2022
Wildfire settlement tax issues are tricky
In most fire cases, legal fees can be dealt with in a way so that victims do not have to pay tax on the fees, but you should still report them on your return.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
If you suffer damage or loss in a fire and collect a settlement, is it taxed? Not all insurance money or legal recoveries are tax-free, and there are numerous traps for the unwary. Fire victims may face damage or destruction of a home or a business, loss of personal property, loss of fences, barns, trees and landscaping. They may have smoke inhalation or worsened medical conditions.
They may have temporary living expenses. Some have insura...
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