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SB-1602 Income taxes: theft loss.(2001-2002)



Current Version: 06/26/02 - Amended Assembly

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SB1602:v97#DOCUMENT

Amended  IN  Senate  May 01, 2002
Amended  IN  Assembly  June 26, 2002

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Senate Bill
No. 1602


Introduced  by  Senator Oller
(Coauthor(s): Senator Johannessen)
(Coauthor(s): Assembly Member Aanestad, Alquist, Briggs, Chavez, Harman, Hollingsworth, Leslie, Robert Pacheco, Zettel)

February 20, 2002


An act to add Section 17204.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1602, as amended, Oller. Income taxes: theft loss.
The Personal Income Tax Law, in conformity with federal income tax law, allows a deduction for theft loss in the taxable year in which the taxpayer discovers that loss.
This bill would, at the option of the taxpayer, allow the loss during the taxable year in which the taxpayer discovers that loss or during the taxable year in which the loss was sustained if not barred by the statute of limitations.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17204.1 is added to the Revenue and Taxation Code, to read:

17204.1.
 Section 165(e) of the Internal Revenue Code, relating to theft losses, is modified for purposes of this part to provide that any loss arising from theft shall, at the option of the taxpayer, affect the tax calculation for either of the following:
(a) The taxable year in which the taxpayer discovers that loss.
(b) The taxable year in which the loss occurred if occurred, provided that the claim for that loss on the taxpayer’s return is not barred by the applicable statute of limitations.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.