Tuesday, May 11, 2021
Joel S. Newman (Wake Forest), Restore the Personal Casualty and Theft Loss Deduction Now!, 11 Wake Forest J. L. & Pol'y ___ (2021):
IRS Statistics of Income data suggest that some 88,000 taxpayers suffered personal casualties in 2018, which would have been deductible under prior law, but were nondeductible pursuant to the Tax Cuts and Jobs Act of 2017 (TCJA).
Those casualties significantly affected these taxpayers' ability to pay taxes, and should have been taken into account. The expanded standard deduction under TCJA, which benefited not only those who suffered casualty losses, but those who didn't, did not help these taxpayers with their individual situations. Any concerns about the complexity of the system are far outweighed by considerations of fairness to these taxpayers. The personal casualty and theft loss should be fully restored, immediately.