Restore the Personal Casualty and Theft Loss Deduction Now!

Wake Forest Journal of Law & Policy, Vol. 11:3, 2021

8 Pages Posted: 27 Apr 2021

See all articles by Joel S. Newman

Joel S. Newman

Wake Forest University - School of Law

Date Written: November 9, 2020

Abstract

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.

Keywords: tax, casualty loss deduction, Tax Cuts and Jobs Act of 2017

JEL Classification: K34

Suggested Citation

Newman, Joel S., Restore the Personal Casualty and Theft Loss Deduction Now! (November 9, 2020). Wake Forest Journal of Law & Policy, Vol. 11:3, 2021, Available at SSRN: https://ssrn.com/abstract=3833830

Joel S. Newman (Contact Author)

Wake Forest University - School of Law ( email )

P.O. Box 7206
Winston-Salem, NC 27109
United States

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