Asked by Shannon Williams on Apr 27, 2024
Verified
Theft losses are deducted in the tax year in which the theft was discovered,rather than the year of theft,if the discovery comes later.
Theft Losses
Financial deductions allowed for stolen property, subject to certain conditions and limitations.
Tax Year
The 12-month period for which an individual or entity reports income and files a tax return, which may align with the calendar year or a fiscal year.
- Understand the treatment of casualty and theft loss deductions under tax law.
Verified Answer
RT
Ribaraoi TekieraApr 30, 2024
Final Answer :
True
Explanation :
Theft losses are deductible in the tax year in which they are discovered, not necessarily the year in which they occurred. This means that if the theft occurred in one year but was not discovered until a later year, the deduction would be taken in the year of discovery.
Learning Objectives
- Understand the treatment of casualty and theft loss deductions under tax law.
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