From Discovery to Deduction: Modern Theft Loss Rules Explained

https://is1-ssl.mzstatic.com/image/thumb/Podcasts211/v4/05/e7/90/05e790ec-665e-00fd-0927-1778d90db7df/mza_4486559676556357483.jpg/600x600bb.jpg

Tax in Action: Practical Strategies for Tax Pros

Jeremy Wells, EA, CPA

14 episodes

5 days ago

Join Jeremy Wells, EA, CPA, as he breaks down the complexities of tax law into practical guidance you can apply immediately. Each episode focuses on a specific tax strategy, credit, or compliance issue that matters to tax professionals and business owners. Rather than theoretical discussions, Jeremy delivers actionable insights based on real-world scenarios and current tax regulations. Whether you're navigating Section 1031 exchanges, maximizing research credits, or helping clients with energy tax incentives, this podcast provides the technical details and strategic considerations you need to confidently serve your clients. Perfect for tax practitioners looking to deepen their expertise and business owners wanting to make more informed tax decisions.

Business

Education

RSS

All content for Tax in Action: Practical Strategies for Tax Pros is the property of Jeremy Wells, EA, CPA and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.

Business

Education

https://img.transistor.fm/bPJC80dTK-utNy2Glul7MvAEep8gO5suW0tLZ9_9u3A/rs:fill:0:0:1/w:1400/h:1400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS8wN2Iy/ZDhkNDgzZGRlNmU0/NGJjYzVkNDkzNjk4/ZWY2YS5wbmc.jpg

From Discovery to Deduction: Modern Theft Loss Rules Explained

Tax in Action: Practical Strategies for Tax Pros

1 hour 4 minutes

1 month ago

From Discovery to Deduction: Modern Theft Loss Rules Explained

Jeremy explores the complex world of theft loss deductions, examining how digital asset scams have renewed interest in these tax provisions under the Tax Cuts and Jobs Act. The episode breaks down the three key criteria for claiming theft losses, explains why timing of discovery matters more than when the theft occurred, and analyzes five modern scam scenarios from IRS Chief Counsel guidance including pig butchering schemes and romance scams. Jeremy concludes with a fascinating 1984 court case involving Civil War veterans' land rights that shows even tax court judges can disagree on fundamental questions of tax law.

Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Introduction: Digital assets spark new interest in theft losses
(03:00) - The three types of losses under IRC Section 165
(08:00) - Three criteria for claiming a theft loss deduction
(13:00) - When discovery matters more than when theft occurred
(19:00) - State law defines theft for federal tax purposes
(25:35) - Simple disappearance is not theft
(28:35) - Casualty losses vs theft losses: Key differences
(30:35) - Stock declines don't qualify as theft losses
(34:35) - Ponzi schemes get special safe harbor treatment
(42:35) - Five modern scam scenarios from IRS Chief Counsel
(54:35) - Reporting theft losses on Form 4684
(57:35) - The Booth case: When smart judges disagree
(01:03:35) - Wrap-up and final thoughts

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com

Subscribe on YouTube
https://www.youtube.com/@TaxinAction

Earn CPE for Listening to This Podcast
https://www.earmark.app/

This podcast is a production of the Earmark Media