MD HB1390

Creates a Maryland income tax subtraction for personal casualty losses arising from theft or fraud schemes, covering property not connected with a trade, business, or profit-seeking transaction

Allows deduction for losses that would have qualified under Internal Revenue Code § 165 before January 1, 2018, plus any related expenses or penalties incurred during the taxable year

Requires taxpayers to attach a police report to their tax return documenting that the theft or fraud scheme occurred

Reduces the subtraction by any amount already deducted under federal IRC § 165 for that taxable year to prevent double benefits

Takes effect July 1, 2025, and applies to taxable years beginning after December 31, 2024