Time is running out to return stolen goods to avoid paying taxes on them
(Gray News) – There is only a limited amount of time left in 2021 to return any stolen property to avoid paying taxes on it.
According to the IRS, stolen property falls into the category of “other income” obtained throughout the year and must be documented.
“If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,” the IRS guidelines from 2021 Publication 17 reads.
Likewise, the IRS said any income obtained from illegal activities, like dealing drugs, must also be claimed.
This income is added on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if it’s from your self-employment activity, according to the IRS.
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