Many of us have lost our homes or suffered serious property damage due to the fires ravaging Los Angeles. We extend our deepest sympathies to you and your loved ones, and we share in your sense of loss.

We write to let you know about several changes in the law that have been enacted in recent days to assist those impacted by the fires. Many of these have taken the form of extending deadlines and of providing relief from certain taxes.

Extension of Time to File Tax Returns

• On January 11, the State of California granted a six-month extension to file State income tax returns. Specifically, residents of Los Angeles County will have until October 15, 2024 to file these returns.
• Likewise, the IRS has granted the same deadline to Los Angeles County taxpayers for their 2024 federal personal income tax returns.

Property Tax Relief

In addition, property taxes will also be impacted by the fires. As detailed below, there are steps we can help you take. One of the most important things you can do is to have someone document via photos, repair estimates insurance claims, and other written records that reflect the extent of damage that your property suffered. 
 
For those who have lost their homes to the fire, we know firsthand what that feels like.  You do have some options. Notably, California’s Proposition 19 may allow you to transfer the base-year value of your old property (the value used to assess your property taxes) to a replacement property of equal or lesser value. This means that you will not face a dramatic increase in property taxes after buying or building a new home. Your new property should ideally be in Los Angeles County, although other counties may allow transfers as well. Your new property must be purchased or constructed within 2 years of the fire.
 
Tax relief is also available for the many residents have lost more than $10,000 in market value due to the fires.  You are eligible to file a claim with the County Assessor to have your property reassessed to reflect its reduced value. This reassessment would temporarily reduce your property taxes until you restore the property to its former condition. This isn’t something you have to do immediately, as you generally have 12 months, to file such a claim.  We have long experience working with, and when necessary, litigating against county assessors’ offices, and can assist you.
 
Finally, if you still need to pay (or have already paid) current year property taxes on a home that was destroyed or significantly damaged by these fires, California’s Revenue and Taxation Code offers deferrals or prorated refunds on these taxes. You can apply for cancellation or a refund of property taxes for the period your property is uninhabitable. You have 12 months from the date your property was lost or damaged to make your application.

This is Personal and Professional

We have been in Pasadena for more than 30 years. As many of you know, our offices overlook City Hall. Pasadena is deeply woven into our history and our office. In 2017, to commemorate the 25^th anniversary of when Kevin J. Moore opened his offices at 301 N. Colorado Blvd., we commissioned BD Cahill, to create original large-scale landscapes of scenes from Pasadena. One of those paintings, which graces our main corridor, and which displays a view from our offices of city hall and the San Gabriel mountains, is at the top of this page.

We have been in Southern California long enough to know that we are, if nothing else, resilient people. All of us are here because we are descendants of survivors.   We are fortunate to serve clients throughout the region and beyond. Whether you, your business, or someone you know has been impacted by the Eaton, Palisades, or Sunset/Hollywood Fires or need assistance for any other reason, we continue to stand ready to answer any questions you may have and to be of service.

Regardless of which provision best suits your needs, it’s important to document and retain evidence of your damaged property, including photographs, repair estimates, and insurance claims. KJMLAW stands ready to help you throughout this entire process. Please do not hesitate to reach out to us for guidance during this difficult time.