Personal income tax: exclusions: interest income: theft.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates an exclusion from California personal income tax for interest income that is stolen, sold, or otherwise transferred from a taxpayer without their consent. The exclusion applies to investment interest income generated during the taxable year. The law takes effect immediately. This provision aligns with federal tax law regarding investment interest deductions.
Key provisions
- Creates an exclusion for stolen investment interest income.
- The exclusion applies to interest generated on investments.
- The taxpayer must not have consented to the theft or transfer.
- The interest must be stolen, sold, or otherwise transferred against the taxpayer’s will.
- The exclusion applies to taxable years beginning January 1, 2026.
- A deduction for the excluded interest is not allowed.
- The law takes effect immediately.
Who is affected
- Taxpayers
- Investment account holders
- California residents
Notable changes
- Adds a new provision to the Revenue and Taxation Code.
- Introduces a specific exclusion for stolen investment interest income.
Fiscal impact
The bill will likely result in a reduction of tax revenue for the state due to the exclusion of interest income.
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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