if a person has a theft charge and was giving a sis and the company has already written off the loss from taxes can they still collect restitution from a person. I thought it would be illegal for the to double collect
2007-05-19 16:16:27 · 4 answers · asked by confused 1 in Business & Finance ➔ Taxes ➔ United States
It's not illegal for a company to seek restitution for a theft. If they have taken a casualty loss for the theft and later recovered some of the stolen property or other restitution, there are mechanisms to show that recovery as income in later tax years.
2007-05-19 18:30:09 · answer #1 · answered by ninasgramma 7 · 5⤊ 0⤋
This is NOT a "double collection". The tax write-off for the loss does not absolve the guilty party of the responsibility to pay for the theft. If and when the company collects, it is simply claimed as income in the year it was received.
A double collection would be if the company collected from their insurance company and then collected from the thief and failed to reimburse the insurance company. That would be an illegal act on the part of the company but still would not absolve the thief of the responsibility to make restitution.
However it's handled, the thief is ALWAYS liable.
2007-05-20 00:52:30 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
From what I bear in innovations, you may sell at a loss everytime you have chose, yet as far as tax applications, those losses can purely be used to offset good points. you may no longer take losses and then seem to get a deduction/help of your tax legal duty. What you're able to do is take a earnings, and then take a loss to offset the earnings so which you do no longer could desire to pay taxes on the earnings (in the event that they internet out). Examples: Take a $1000 loss merchandising a inventory. Tax effect: None Take a $1000 earnings on merchandising a inventory Tax effect: Pay taxes on the $1000 earnings in accordance to present day tax regulations. Take a $1000 earnings on merchandising a million inventory and a $750 loss merchandising yet another Tax effect: The $750 loss will decrease your earnings (what you owe tax on) to $250. Please re-examine this with the IRS...IRS.gov is the internet website.
2017-01-10 09:36:32 · answer #3 · answered by ? 4 · 0⤊ 0⤋
sure they can they just report the the restitution as income.
2007-05-19 17:28:23 · answer #4 · answered by Anonymous · 5⤊ 0⤋