A quick disaster-related tax tip.

• Position: News & Trends - Brief Article

As wildfire season draws to a close, California CPA thought it would be a good idea to remind CPAs of some disaster-related tax tips. The following, courtesy of Anna Maria Galdieri, chair of the Disaster Tax Subcommittee of CalCPA's Committee on Taxation, is an oft-requested piece of guidance:

Carol and Bob Fossily lost their house and everything in it in the Southern California wildfires of October 2003. They had lived in their house for 18 months before the fire. Their tax basis in the house is $130,000. Their insurance recovery is $350,000 for the house and $115,000 for the household contents. They had no scheduled personal property. What amount are the Fossilys required to re-invest in replacing their house and contents under the...