To amend the Internal Revenue Code of 1986 to establish a deduction for attorney fees awarded with respect to certain wildfire damages and to exclude from gross income settlement funds received with respect to such damages.

12/29/2022, 10:18 PM

Summary of Bill HR 7305

Bill 117 hr 7305, titled "To amend the Internal Revenue Code of 1986 to establish a deduction for attorney fees awarded with respect to certain wildfire damages and to exclude from gross income settlement funds received with respect to such damages," aims to provide tax relief for individuals who have incurred damages from wildfires.

The bill proposes to allow individuals who have received attorney fees related to wildfire damages to deduct those fees from their taxable income. Additionally, the bill seeks to exclude settlement funds received for wildfire damages from being counted as gross income.

This legislation is designed to provide financial relief to individuals who have been affected by wildfires and incurred legal fees in the process of seeking compensation for their damages. By allowing for deductions of attorney fees and excluding settlement funds from taxable income, the bill aims to alleviate some of the financial burden faced by individuals impacted by wildfires. Overall, Bill 117 hr 7305 aims to provide tax relief for individuals affected by wildfires and ensure that they are not further burdened by additional tax liabilities related to their recovery efforts.

Congressional Summary of HR 7305

This bill allows a deduction from gross income (above the line deduction) for attorney fees and court costs awarded with respect to a qualifying wildfire disaster (i.e., any forest or range fire that is a federally declared disaster, occurs in a disaster area, and occurs in 2015 or later).

The bill excludes from the gross income of a taxpayer, for income tax purposes, amounts paid to compensate victims for losses or damages in connection with a qualifying wildfire disaster.

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Current Status of Bill HR 7305

Bill HR 7305 is currently in the status of Bill Introduced since March 30, 2022. Bill HR 7305 was introduced during Congress 117 and was introduced to the House on March 30, 2022. Bill HR 7305's most recent activity was Referred to the House Committee on Ways and Means. as of March 30, 2022

Bipartisan Support of Bill HR 7305

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

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Policy Area and Potential Impact of Bill HR 7305

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 7305

To amend the Internal Revenue Code of 1986 to establish a deduction for attorney fees awarded with respect to certain wildfire damages and to exclude from gross income settlement funds received with respect to such damages.