Not classified as a qualified disaster loss
The Los Angeles fires of January 2025 are not classified as a qualified disaster loss for tax purposes. While the IRS has provided tax relief for affected taxpayers, the fires did not meet the criteria for a qualified disaster loss as defined by the IRS, which requires a disaster to be declared by the president and to have begun on or before a specific date. Therefore, individuals and businesses affected by these fires may not qualify for the same level of tax relief as those affected by "qualified" disasters.
IRS
thus your loss is reduced by $100 and 10% of your adjusted gross income. In addition, you don't also get the standard deduction.
