If you’re rebuilding after the Eaton Fire or another recent California wildfire, taxes may be the last thing on your mind. But understanding your options can make a real difference in your financial recovery.
Are Insurance Proceeds Taxable?
One of the most common questions from wildfire survivors is: “Will my insurance payout be taxed?” Generally, insurance proceeds for property loss are not taxable if they’re used to repair or replace your property. However, if you receive more than your adjusted basis in the property, you may have a taxable gain. Special rules apply for disaster victims, so it’s important to seek expert advice.
Resources and Upcoming Events
United Policyholders regularly hosts “Taxing Matters” webinars for wildfire survivors, featuring CPAs and disaster tax experts. Attendees can submit questions in advance and receive practical tips on topics such as filing extensions, casualty loss claims, and strategies for those who are underinsured. Information on a September 24, 2025, session can be found at Taxing Matters for 2025 Los Angeles Wildfire Impacted Households – United Policyholders
Take Charge of Your Recovery.
Tax relief is available, but the rules are complex and deadlines matter. Don’t leave money on the table—consult a tax professional, attend a “Taxing Matters” webinar, and keep detailed records of your losses and recovery payments.
While Danko Meredith does not provide tax advice, we encourage our clients to take advantage of reputable resources like United Policyholders and to consult qualified tax professionals. If you need help finding the right information or connecting with disaster tax experts, our office can steer you in the right direction.