California Qualified Casualty Loss

[ljsmith2]

Hello,

My client sustained damage from a California winter storm in a Federally declared Qualified disaster area.  Does California conform to the $500 haircut with no AGI reduction? (i.e. add to Standard Deduction)

I have filled out the Federal form 4684 and included the FEMA disaster declaration number that qualifies the loss to be an addition to the Standard Deduction. Everything looks good until I get to the California tax return.

Instead of carrying over the $500 'haircut' like the Federal return, it automatically inputs $100 and reduces the loss by 10% AGI with the remaining allowable loss as an addition to Itemized Deductions.

Line 11, Form 4684 (Calif) says "($500 if qualified disaster loss rules apply; see instructions)"

There is a California Disaster Code (141) but I do not see anywhere to input.   The 'Disasters' box has been checked on the Information Worksheet and an explanation entered.

I am unable to find any information in the  instructions on California Form 4684 or how, or if, California applies the disasters the same way.

Your help is appreciated.

[Just-Lisa-Now-]

You may have to drag out the CA instructions booklet for this.   All my CA disaster victims were from the wildfires and were made whole by insurance, so I havent had any disaster losses to take on the returns.

https://www.ftb.ca.gov/forms/misc/1034.pdf