Provides tax relief for individuals affected by certain federal disasters, specifically severe storms, straight-line winds, and tornadoes.
Amends the Taxpayer Certainty and Disaster Tax Relief Act of 2020 to extend rules for the treatment of disaster-related personal casualty losses.
Excludes from gross income any compensation received as a relief payment for losses or damages resulting from the specified disasters.
Defines “qualified severe storms, straight-line winds, and tornadoes relief payment” as compensation for losses, expenses, or damages incurred due to federally declared disasters after December 31, 2023.
Prohibits double benefits by denying deductions or credits for expenditures related to amounts excluded from gross income under this legislation.
Establishes that no increase in property basis will result from amounts excluded under this section.
The amendments take effect for amounts received after December 31, 2023.
