IRS: Stolen property must be reported as income on taxes

[Lennie]

Thieves are required to report the value of the stolen items as income and pay income taxes on that amount.

IRS: Stolen property must be reported as income on taxes

CONWAY, S. C. (WPDE) — Stolen anything lately? The Internal Revenue Service is telling taxpayers to report anything stolen this year as income on tax returns — unless they return it. A photo circulating online has others wondering if it's fake. Well, believe it. The rule is real and it's...

weartv.com

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[Cavedweller]

Makes sense. That's how they nailed Al Capone. Got him for tax evasion. It wasn't for anything else he did.

 

[72scoutman]

So if they wait till after year end to return the stolen goods does the recieving party have to claim it as income the following year? You guys know it's in there!

By this logic I should be able to deduct the value of stolen goods from my taxable income correct?

 

[Lazyfaire]

So if they wait till after year end to return the stolen goods does the recieving party have to claim it as income the following year? You guys know it's in there!

By this logic I should be able to deduct the value of stolen goods from my taxable income correct?

Think you can take it as a loss, as long as there is a police report etc on it.

 

[Certaindeaf]

This is why I no longer steal hearts.

 

[72scoutman]

Think you can take it as a loss, as long as there is a police report etc on it.

Good info, luckily I've never had much of value stolen. Now I know.

 

[Lazyfaire]

Good info, luckily I've never had much of value stolen. Now I know.

I'm glad the dopes stole only my 8 track tapes! No value there!

 

[Alexx1401]

I'm glad the dopes stole only my 8 track tapes! No value there!

Most doper thieves would probably not know what the hell those were now days Wonder if a working deck to play them is now a "collector item".

 

[Darthranger]

 

[Lazyfaire]

Most doper thieves would probably not know what the hell those were now days Wonder if a working deck to play them is now a "collector item".

Heck I probably would have gotten the deck out of the car for them too!

 

[Cavedweller]

So if they wait till after year end to return the stolen goods does the recieving party have to claim it as income the following year? You guys know it's in there!

I don't believe this is a serious question. But no, you would not as it is your property being returned. If you had taken a deduction under the old tax laws, then theoretically you would have to file an amended return for the year in which you took a deduction.

By this logic I should be able to deduct the value of stolen goods from my taxable income correct?

Think you can take it as a loss, as long as there is a police report etc on it.

You used to be able to, if you itemized deductions. It was called a casualty loss. But the tax laws were changed some time ago and that deduction was eliminated.

ETA: It wasn't that great a deal anyway. Since it was a deduction rather than an adjustment to income, the most you could get in terms of a reduction in taxes would depend on the percentage you paid in your tax bracket. You did not get the full value of the stolen property back.

Any further tax advice will cost you. PM me with questions.

Wonder if a working deck to play them is now a "collector item".

Not so much. Looks like you can get one on line for $100 - 150. Tapes go for $3 -5.

It's not as silly an idea as it sounds. Drug dealers, for example, are expected to declare income from their sales of illegal drugs. How many actually do? Probably none. The IRS doesn't care if the income generating activity is legal or illegal, they just expect you to pay tax on it. Prostitution, drug dealing, sex trafficing, whatever. They expect you to declare the income.

I repeat, that's how they nailed Al Capone. They couldn't get him for murder, bootlegging, illegal gambling, prostitution, or anything else. But he got 30 years for tax evasion and died in prison.

"The federal authorities became intent on jailing Capone and charged him with 22 counts of tax evasion. He was convicted of five counts in 1931. During a highly publicized case, the judge admitted as evidence Capone's admissions of his income and unpaid taxes..."

Al Capone - Wikipedia

en.wikipedia.org

 

[Lilhigbee]

Cannery Row, John Steinbeck 1947. Dora Flood, the madam of the Bear Flag Restaurant found herself in this position;

"Dora was having trouble with her income tax, for she was entangled in that curious enigma which said the business was illegal and then taxed her for it."

 

[Member 52301]

This is why I no longer steal hearts.

Love it!

Cate

 

[David Sherman]

Thieves are required to report the value of the stolen items as income and pay income taxes on that amount.

IRS: Stolen property must be reported as income on taxes

CONWAY, S. C. (WPDE) — Stolen anything lately? The Internal Revenue Service is telling taxpayers to report anything stolen this year as income on tax returns — unless they return it. A photo circulating online has others wondering if it's fake. Well, believe it. The rule is real and it's...

weartv.com

Does that mean that politicians also must declare the bribes they take?

 

[72scoutman]

Does that mean that politicians also must declare the bribes they take?

Legally yes, in actuality NO they are exempt just like from vaccines and mask mandates when they don't know a camera is present.

 

[57buick]

I bet the IRS really are just doing this as a technicality so when they do bust drug dealers and other criminals they can add on more charges to their arrest and inflict more of a sentence on them. I don't think they really expect a criminal to report the stuff

 

[Alexx1401]

I bet the IRS really are just doing this as a technicality so when they do bust drug dealers and other criminals they can add on more charges to their arrest and inflict more of a sentence on them. I don't think they really expect a criminal to report the stuff

It is of course done that way. They have LONG done this with drug dealers. The dealers are expected to report their income. None in their right mind do of course. All this does is when they are caught with a lot of "things" they can not account for it is easier to take. That way they can freeze assets rather than let the criminal use the money. Can't show you paid taxes? They take it with the threat of adding more charges if the person objects.

 

[titsonritz]

I repeat, that's how they nailed Al Capone. They couldn't get him for murder, bootlegging, illegal gambling, prostitution, or anything else. But he got 30 years for tax evasion and died in prison.

Al Capone - Wikipedia

en.wikipedia.org

He didn't die in prison, from the link you posted...

He was convicted and sentenced to 11 years in federal prison. After conviction, he replaced his defense team with experts in tax law, and his grounds for appeal were strengthened by a Supreme Court ruling, but his appeal ultimately failed. Capone showed signs of neurosyphilis early in his sentence and became increasingly debilitated before being released after almost eight years of incarceration. On January 25, 1947, he died of cardiac arrest after suffering a stroke.

Due to his failing health, Capone was released from prison on November 16, 1939,[130] and referred to the Johns Hopkins Hospital in Baltimore for the treatment of paresis (caused by late-stage syphilis). Hopkins refused to admit him on his reputation alone, but Union Memorial Hospital accepted him. Capone was grateful for the compassionate care that he received and donated two Japanese weeping cherry trees to Union Memorial Hospital in 1939. A very sickly Capone left Baltimore on March 20, 1940, after a few weeks of inpatient and outpatient care, for Palm Island, Florida.[131][132][133] In 1942, after mass production of penicillin was started in the United States, Capone was one of the first American patients treated by the new drug.[134] Though it was too late for him to reverse the damage to his brain, it did slow down the progression of the disease.[125]

In 1946, his physician and a Baltimore psychiatrist examined him and concluded that Capone had the mentality of a 12-year-old child.[89] He spent the last years of his life at his mansion in Palm Island, Florida, spending time with his wife and grandchildren.[135] On January 21, 1947, Capone had a stroke. He regained consciousness and started to improve, but contracted bronchopneumonia. He suffered a cardiac arrest on January 22, and on January 25, surrounded by his family in his home, Capone died after his heart failed as a result of apoplexy.[136][137] His body was transported back to Chicago a week later and a private funeral was held.[138] He was originally buried at Mount Olivet Cemetery in Chicago. In 1950, Capone's remains, along with those of his father, Gabriele, and brother, Salvatore, were moved to Mount Carmel Cemetery in Hillside, Illinois.[139][140]

 

[titsonritz]

I wonder how much Brandon paid in taxes on his Beijing bucks?

 

[Cavedweller]

He didn't die in prison, from the link you posted...

He was convicted and sentenced to 11 years in federal prison. After conviction, he replaced his defense team with experts in tax law, and his grounds for appeal were strengthened by a Supreme Court ruling, but his appeal ultimately failed. Capone showed signs of neurosyphilis early in his sentence and became increasingly debilitated before being released after almost eight years of incarceration. On January 25, 1947, he died of cardiac arrest after suffering a stroke.

Due to his failing health, Capone was released from prison on November 16, 1939,[130] and referred to the Johns Hopkins Hospital in Baltimore for the treatment of paresis (caused by late-stage syphilis). Hopkins refused to admit him on his reputation alone, but Union Memorial Hospital accepted him. Capone was grateful for the compassionate care that he received and donated two Japanese weeping cherry trees to Union Memorial Hospital in 1939. A very sickly Capone left Baltimore on March 20, 1940, after a few weeks of inpatient and outpatient care, for Palm Island, Florida.[131][132][133] In 1942, after mass production of penicillin was started in the United States, Capone was one of the first American patients treated by the new drug.[134] Though it was too late for him to reverse the damage to his brain, it did slow down the progression of the disease.[125]

In 1946, his physician and a Baltimore psychiatrist examined him and concluded that Capone had the mentality of a 12-year-old child.[89] He spent the last years of his life at his mansion in Palm Island, Florida, spending time with his wife and grandchildren.[135] On January 21, 1947, Capone had a stroke. He regained consciousness and started to improve, but contracted bronchopneumonia. He suffered a cardiac arrest on January 22, and on January 25, surrounded by his family in his home, Capone died after his heart failed as a result of apoplexy.[136][137] His body was transported back to Chicago a week later and a private funeral was held.[138] He was originally buried at Mount Olivet Cemetery in Chicago. In 1950, Capone's remains, along with those of his father, Gabriele, and brother, Salvatore, were moved to Mount Carmel Cemetery in Hillside, Illinois.[139][140]

I guess my memory was faulty. Damn, that's the first time that's happened. Must be old age.

For some reason I thought he'd gotten 30 and died of syphilis in prison. Must have been that lousy PBS documentary I saw. I'm going to have to write them a letter!