Plain English Breakdown
The phrase 'as specified' implies further details exist elsewhere or are defined by reference not fully detailed in this excerpt.
Excluding Stolen Investment Interest from Taxable Income
AB-702 allows taxpayers to exclude interest income earned on investments that were stolen, sold, or transferred without their consent for tax years starting January 1, 2026.
What This Bill Does
- Creates a new exclusion from gross income for specific investment interest.
- Applies only if the money was taken without the taxpayer's consent and against their will.
- Sets the start date for this rule as January 1, 2026.
Who It Names or Affects
- Taxpayers who earn interest income on investments in California that are stolen or transferred without permission during the taxable year.
Limits and Unknowns
- The bill states conditions apply 'as specified' but does not list all specific details of what counts as a qualifying theft.
- The official text provided does not include an effective date, only the start date for taxable years.