discuss at what point in time a theft loss generally is recognized course hero

What is theft losses?

Theft Losses - A theft is the taking and removal of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and must have been done with criminal intent.

How is theft graded under consolidated theft laws?

Grading under consolidated theft statutes depends primarily on the value of the stolen property. Theft can be graded by degrees (Connecticut Jury Instructions § 53a-119, 2011) or as petty theft, which is theft of property with low value, and grand theft, which is theft of property with significant value (Cal. Penal Code § 486, 2011).

What constitutes all theft?

All theft generally requires the attendant circumstances that the property stolen is the property of another, and victim consent to the taking, conversion, or transfer of ownership is lacking.

What constitutes theft by deception?

Lueth, 2011). The Model Penal Code criminalizes theft by deception when a defendant purposely “creates or reinforces a false impression, including false impressions as to law, value, intention or other state of mind” (Model Penal Code § 223.3 (1)). Review the example with Jeremy in Section 11 “Example of Consolidated Theft Act”.

How much did Hazel pay for the painting?

Hazel sustained a loss on the theft of a painting. She had paid $20,000 for the painting, but it was worth $40,000 at the time of the theft. Evaluate the tax consequences of treating the painting as investment property or as personal use property.

Why did Mary's house value decline?

The value of Mary's personal residence has declined significantly because of a recent forest fire in the area where she lives. Mary's house suffered no actual damage during the fire, but because much of the surrounding area was destroyed, the value of all of the homes in the area declined substantially.

Is casualty loss allowed for a decline in the value of the property?

Casualty losses are not allowed for a decline in the value of the property. Losses are allowed only for actual damage. Discuss at what point in time a theft loss generally is recognized. Generally, a theft loss is deducted in the year of discovery.

Can Sean take a loss as a business bad debt?

Sean cannot take the loss as a business bad debt because a bond is a security. Sean cannot take the loss as a worthless security because losses are allowed only when the security is completely worthless. Discuss the tax treatment of the sale of 1244 stock at a gain.

Can you claim theft loss if you have a full recovery?

However, no theft loss is permitted if a reimbursement claim with a reasonable prospect of full recovery exists. If the taxpayer has a partial claim of recovery, only part of the loss can be claimed in the year of discovery, and the remainder is deducted in the year the claim is settled.

What is theft in law?

A theft is the taking and removal of money or property with the intent to deprive the owner of it . The taking must be illegal under the law of the state where it occurred and must have been done with criminal intent. The amount of your theft loss is generally the adjusted basis of your property because the fair market value of your property immediately after the theft is considered to be zero.

How to claim casualty and theft?

For property held by you for personal use, you must subtract $100 from each casualty or theft event that occurred during the year after you've subtracted any salvage value and any insurance or other reimbursement. Then add up all those amounts and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.

What are the three types of casualty losses?

There are three types of casualty losses, federal casualty losses, disaster losses and qualified disaster losses. All three types of losses are referred to as federally declared disasters, but the requirements for each loss vary. For more information, see Publication 547, Publication 2194 PDF, and Publication 976 or refer to ...

What is the 515 topic?

Topic No. 515 Casualty, Disaster, and Theft Losses. Generally, you may deduct casualty and theft losses relating to your home, household items, and vehicles on your federal income tax return if the loss is caused by a federally declared disaster declared by the President.

What is casualty loss?

A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption. A casualty doesn't include normal wear and tear or progressive deterioration. There are three types ...

How much of your gross income is deductible for casualty loss?

Your net casualty loss doesn't need to exceed 10% of your adjusted gross income to qualify for the deduction, but you would reduce each casualty loss by $500 after any salvage value and any other reimbursement. For more information, see the Instructions for Schedule A (Form 1040) or Instructions for Form 1040-NR.

Is a casualty loss deductible?

Casualty losses are deductible in the year you sustain the loss, which is generally in the year the casualty occurred. You have not sustained a loss if you have a reasonable prospect of recovery through a claim for reimbursement. If you have a casualty loss from a federally declared disaster that occurred in an area warranting public ...

What is theft under modern consolidated theft statutes?

To summarize, whether the defendant steals by a physical taking, a conversion, or a false representation of fact, and whether the defendant steals real or personal property or a service, the crime is theft under modern consolidated theft statutes and is graded primarily on the value of the property or service stolen.

What is conversion theft?

When the defendant steals by conversion, the theft is generally an embezzlement theft (Commonwealth v. Mills, 2011).

What is false pretenses in a consolidated theft statute?

A false pretenses or larceny by trick theft under a consolidated theft statute requires the additional attendant circumstance element of victim reliance on the false representation of fact made by the defendant (People v. Lueth, 2011). Thus a victim’s knowledge that the statement is false could operate as a failure of proof or affirmative defense in many jurisdictions.

What is larceny by trick and false pretenses?

As stated previously, the taking in both larceny by trick and false pretenses occurs when the defendant makes a false representation of fact that induces the victim to transfer the property or services. In many jurisdictions, the defendant must have general intent or knowledge that the representation of fact is false and must make the false representation with the specific intent or purposely to deceive (People v. Lueth, 2011). The Model Penal Code criminalizes theft by deception when a defendant purposely “creates or reinforces a false impression, including false impressions as to law, value, intention or other state of mind” (Model Penal Code § 223.3 (1)).

What is consolidated theft?

Consolidated theft is a crime that always includes bad results or harm, which is the victim’s temporary or permanent loss of property or services, no matter how slight the value. In the case of theft by false pretenses and larceny by trick, in some jurisdictions, the status of the property after it has been stolen determines which crime was committed. If the defendant becomes the owner of the stolen property, the crime is a false pretenses theft (People v. Curtin, 2011). If the defendant is merely in possession of the stolen property, the crime is larceny by trick (People v. Beaver, 2011). When the stolen property is money, the crime is false pretenses theft because the possessor of money is generally the owner (People v. Curtin, 2011).

What is the purpose of the Model Penal Code?

The Model Penal Code requires purposeful intent for theft by unlawful taking, deception, theft of services, and theft by failure to make required disposition of funds received (Model Penal Code §§ 223.2, 223.3, 223.7, 223.8). When the criminal intent is specific or purposely, the defendant must intend the criminal act of stealing ...

What is a criminal act?

The criminal act element required under consolidated theft statutes is stealing real property, personal property, or services. Real property is land and anything permanently attached to land, like a building. Personal property is any movable item. Personal property can be tangible property, like money, jewelry, vehicles, electronics, cellular telephones, and clothing. Personal property can also be intangible property, which means it has value, but it cannot be touched or held, like stocks and bonds. The Model Penal Code criminalizes theft by unlawful taking of movable property, theft by deception, theft of services, and theft by failure to make required disposition of funds received under one consolidated grading provision (Model Penal Code §§ 223.1, 223.2, 223.3, 223.7, 223.8).