California SB268 would exclude certain settlement payments from gross income for qualified taxpayers affected by disasters.

California SB268 would amend the Revenue and Taxation Code to exclude from gross income any qualified amounts received by qualified taxpayers for property damaged or destroyed by disasters. Qualified amounts include payments from settlement entities to replace property in California damaged by disasters or accidental or human-caused events. The exclusion applies to taxpayers who own property, reside, or have a place of business in the affected area. The settlement entity must provide documentation of the settlement payments upon request.

California SB268 would exclude certain settlement payments from gross income for qualified taxpayers affected by disasters.

California SB268 would amend the Revenue and Taxation Code to exclude from gross income any qualified amounts received by qualified taxpayers for property damaged or destroyed by disasters. Qualified amounts include payments from settlement entities to replace property in California damaged by disasters or accidental or human-caused events. The exclusion applies to taxpayers who own property, reside, or have a place of business in the affected area. The settlement entity must provide documentation of the settlement payments upon request.