TEOTWAWKI wrote: Dreamsglore wrote: Markle wrote: Dreamsglore wrote: Markle wrote: Chrissy wrote:There was nothing you could have done.
Im sure walmart gets a nice tax break every year for loss.
out of curiosity, what were the items on the bottom that the person got away with? did you happen to see what the person purchased. im just nosey.
Comes right off their bottom line. Where did you get the idea of a tax break for merchandise stolen?
You get to deduct losses.
Losses are not the same as theft.
They are on income taxes. I don't know where you get that. If you suffer a loss through theft,vandalism or what ever it is a deductible loss.
I had a $700 canoe stolen filed a police report...then come tax time Deducted the loss.....all good according to TurboTax
The company has a record of all the merchandise the store received since the previous annual inventory. Surprisingly, they also have the cost and retail price the merchandise SHOULD have come in through the cash registers.
If the store inventory shows the store should have had $100.00 in sales from merchandise which cost Walmart $75.00 they would should have a gross profit of $25.00. If the merchandise in question, were to sell for $10.00 each and one was stolen, they have income of $90.00 instead of $100.00 and their gross profit would be $15.00 instead of $25.00. After all their expenses, the net profit for a retail operation might be 15%, less corporate taxes.
If their income was $100.00 and their net profit was 15%, they would make $15.00...less taxes off those items. However, if they only received $90.00 their gross profit would be $5.00 on which they would pay corporate taxes.
So, in a way, it is a deduction since they will not pay taxes on that $10.00 which was stolen. At the 15% profit margin, the store would have to sell $66.00 in merchandise, at no profit to make up that stolen $10.00.
You deducted a specific item, your canoe. That was $700.00 you subtracted from your gross INCOME. If your tax rate was 20% more likely 15%, plus your SS share of 6% you did not pay $147.00 in tax that year.
The exact same taxes would apply had you EARNED $700.00 less.