KY HB167

Amends KRS 141.019 to allow individual taxpayers to deduct theft losses under Section 165(e) of the Internal Revenue Code when calculating Kentucky net income

Creates an exception to Kentucky's general prohibition on deducting federal loss deductions, which currently only permits wagering losses under Section 165(d)

Applies to non-corporate taxpayers who itemize deductions rather than claiming the standard deduction under KRS 141.081

Aligns Kentucky's treatment of theft losses with federal tax law, which allows taxpayers to deduct losses from theft that are not compensated by insurance or other means