(Sacramento, CA – Insurance News 360) – With the elimination of the federal income tax deduction for losses due to disasters, the California Insurance Department has announced that they believe it victimizes the survivors who have already dealt with disaster-related losses.
Between 2000 and 2013, there were 16 major disaster declarations in California and five that were not declared federal disasters. The Erskine Fire in 2016 killed two and was one of the most destructive of fires in Kern County’s history. It was one of those not declared a federal disaster.
With the elimination of deduction for losses from disasters that don’t qualify for federal designation will hurt survivors as well, because the current deduction covers a variety of situations and any casualty loss, like the theft of a vehicle or other property, damage or destruction of a home due to everyday common occurrences and losses.
“It is outrageous for President Trump and the GOP leadership in Congress to require wildfire survivors to bear the brunt of uninsured losses when they have already endured so much pain and loss,” said Insurance Commissioner Dave Jones. “The GOP tax bill further victimizes wildfire and other disaster survivors where a federal disaster is not declared. It also victimizes those who suffer damage to their homes or other property where there was no disaster, such as kitchen fires, flooding caused by burst pipes, theft of a vehicle and other losses not covered typically by insurance.”