Relating to: individual income tax subtraction for certain theft losses. (FE)

AB 685 allows Wisconsin taxpayers to subtract certain theft losses from their state income tax when those losses are already deductible under federal tax rules (specifically IRS Section 165(c)(2) or (3)). It directly affects individuals who experience qualifying theft losses, such as stolen property, that meet federal deduction criteria. The bill creates a new state tax subtraction provision (statute 71.05(6)(b)57) for these losses, while clarifying that taxpayers cannot claim both this subtraction and a separate casualty loss deduction for the same loss. This aligns Wisconsin's tax treatment with federal rules for theft-related deductions, without creating new federal standards.