An Act to amend 71.07 (5) (a) 3.; to create 71.05 (6) (b) 57. of the statutes; Relating to: individual income tax subtraction for certain theft losses. (FE)
Impact
The bill modifies existing statutes to create a new category under state law for deductible theft losses. Specifically, it establishes that theft losses can be subtracted from income if they meet the criteria laid out in the Internal Revenue Code's section 165, which generally requires the losses to arise from profit-seeking activities or federally declared disasters. This legislative change aligns Wisconsin's tax policy with federal standards and aims to simplify the tax filing process for affected individuals.
Summary
Senate Bill 674 introduces a provision for individual income tax that allows taxpayers to subtract certain theft losses from their taxable income. This change is expected to take effect for the taxable year starting in 2024. The bill's primary objective is to offer financial relief to individuals who experience theft losses that qualify under federal law, regardless of whether they choose to claim these losses on their federal tax returns.
Contention
Notable points of contention surrounding SB674 may arise regarding the implications for state tax revenue, as offering this subtraction could reduce tax collections. Some lawmakers may express concerns about the potential financial impact on the state's budget, especially if the number of applicable theft claims increases. Additionally, debates may center on how the bill interacts with existing tax credits, specifically the itemized deduction credits, as taxpayers who utilize the new subtraction will not be able to count those theft losses towards their itemized deductions.
Crossfiled
An Act to amend 71.07 (5) (a) 3.; to create 71.05 (6) (b) 57. of the statutes; Relating to: individual income tax subtraction for certain theft losses. (FE)
A BILL to amend and reenact § 58.1-322.02 of the Code of Virginia, relating to taxable income; subtractions; retirement income of certain federal employees.
A BILL to amend and reenact § 58.1-322.02 of the Code of Virginia, relating to income tax; subtraction; retirement income of certain federal employees.