IRS clarifies theft and fraud loss deductions - WCS - tax accountant in bel air md

IRS clarifies theft and fraud loss deductions - WCS - tax accountant in bel air md

The Tax Cuts and Jobs Act (TCJA) significantly limited the types of theft losses that are deductible on federal income taxes. But a recent “advice memo” (CCA 202511015) from the IRS’s Office of Chief Counsel suggests more victims of fraudulent scams may be able to claim a theft loss deduction than previously understood. Casualty loss deduction basics The federal tax code generally allows individuals to deduct the following types of losses, if th…