Bill > AB702

This bill proposes a new tax provision that would allow California taxpayers to exclude from their gross income any interest income generated from an investment that is stolen, sold, or transferred without the taxpayer's consent and against their will, starting from taxable years beginning on or after January 1, 2026. Specifically, the bill defines "qualified investment interest" as interest income that a taxpayer generates on an investment during the tax year but loses possession or control of due to unauthorized actions. The legislation prevents taxpayers from claiming an additional deduction for the amount of interest income that is excluded under this provision. By providing this exclusion, the bill aims to offer some tax relief to individuals who have experienced financial losses due to theft or unauthorized transfer of their investment income. The bill takes effect immediately as a tax levy, which means it can be implemented right away upon passage.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB702