WI AB685

Creates a new individual income tax subtraction for theft losses that qualify as itemized deductions under federal IRC Section 165(c)(2) or (3), effective for taxable years beginning after December 31, 2023

Eligible theft losses must be related to profit-seeking activity or connected to a federally declared disaster (or state declared disaster beginning next year)

Taxpayers may claim the state subtraction regardless of whether they actually claim the federal itemized deduction

Prevents double-dipping by prohibiting taxpayers who take the subtraction from also including the theft loss amount when calculating the itemized deductions tax credit

Introduced by Representative Swearingen and Senator Felzkowski; referred to Committee on Ways and Means