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Jan. 21, 2026

California wildfire victims get major tax breaks under new law

California has finally delivered broad tax relief for wildfire settlements--but new legal definitions and shifting requirements mean many victims must still tread carefully to secure their exclusions.

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.

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California wildfire victims get major tax breaks under new law
Shutterstock

Large numbers of fire victims in California have suffered losses.  Some have recovered funds via insurance and lawsuits, but thousands of others are still waiting and hoping to recover. Everyone has to file annual tax returns, and some tax decisions may present themselves early, such as whether to claim a casualty loss on their taxe...

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