grandmabee Posted March 15, 2009 Report Share Posted March 15, 2009 new client lost job and going to jail for thief of money from employer. He made a plea for less time. no trial. plead guilty. had to make restuition of money taken. I know illeagal activity is taxble but if he repaid all the money and this happend in the same year. should be no income right? (he is a police officer) Quote Link to comment Share on other sites More sharing options...
zeke Posted March 15, 2009 Report Share Posted March 15, 2009 He plead guilty to theft. He had the revenue. It is taxable. He MAY be allowed a deduction for restitution, but I woouldn't bet Elrod"s Cookie on it. z Quote Link to comment Share on other sites More sharing options...
Maribeth Posted March 15, 2009 Report Share Posted March 15, 2009 He plead guilty to theft. He had the revenue. It is taxable. He MAY be allowed a deduction for restitution, but I woouldn't bet Elrod"s Cookie on it. z No deduction for monies paid back. The restituion was a penalty and not deductible. Maribeth Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 15, 2009 Report Share Posted March 15, 2009 Here was an interesting discussion about the general issue. Looks like there's no clear guidance, but the issue leans strongly toward no deduction. http://taxprof.typepad.com/taxprof_blog/20...uctibility.html Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.