Re:How the Maker of TurboTax Fought Free, Simple Tax Filing ...
by oblio on Monday March 13, 2017 @05:59AM
(#13856479)
I think the common expectation is that the illegal income/property will be seized by the state and hopefully returned to its rightful owner. No need to tax anything since the thief won't have anything left at the end.
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Re:How the Maker of TurboTax Fought Free, Simple Tax Filing ...
by mikeash on Monday March 13, 2017 @09:43AM
(#13857725)
The IRS seems to account for that with "unless in the same year, you return it to its rightful owner."
I wonder what happens if you steal something, keep it until the next year, and then return it? Do you declare it as income in the year you steal it, and a loss in the year you return it?
(Probably not. I'm too lazy to look it up, but I recall another document that explains that, while income from illegal activities is taxable, expenses for illegal activities are not deductible.)