California AB702 excludes stolen interest income from personal income tax.

California AB702 amends the Revenue and Taxation Code to exclude from gross income any qualified investment interest income that is stolen, sold, or otherwise transferred without the taxpayer's consent. This exclusion applies to taxable years beginning on or after January 1, 2026. The bill defines "qualified investment interest" as interest income generated on an investment that is stolen or transferred against the taxpayer's will. The act does not allow deductions for amounts excluded under this section.

California AB702 excludes stolen interest income from personal income tax.

California AB702 amends the Revenue and Taxation Code to exclude from gross income any qualified investment interest income that is stolen, sold, or otherwise transferred without the taxpayer's consent. This exclusion applies to taxable years beginning on or after January 1, 2026. The bill defines "qualified investment interest" as interest income generated on an investment that is stolen or transferred against the taxpayer's will. The act does not allow deductions for amounts excluded under this section.