Archive for the ‘Tax’ Category
Tax Deductions for Theft Losses Could Help Some Investors
The article in the NY Times is correct, but I think a bit misleading to the lay reader. The benefit they are talking about is only in the tax payable on the investment, not on the whole loss amount. In other words, if you lost $1 million, then you can reduce your taxable income by the amount of your loss, so that the amount of tax you calculate you owe is reduced.
Clearly, value of this reduction in taxes will only be a fraction of your actual loss. So it helps make your net losses smaller, but that is not really going to help people who have been completely wiped out by this.
