This bill amends RCW 82.87.060 to add a new deductible item when computing Washington capital gains tax: a deduction for monetary or capital asset losses suffered by a person as the result of certain criminal acts (those described in chapters 9.35, 9.38, 9.45, 9A.60, or 9A.90 RCW) where part of the criminal act involved inducement of the sale of a capital asset. The loss must be evidenced by a police report or similar documentation. This is a change to existing tax law that creates an additional allowable deduction for qualifying crime-related losses. The bill preserves the existing standard deduction structure for Washington capital gains as $250,000 per individual and limits spouses or registered domestic partners to a combined $250,000 standard deduction regardless of filing status. It also states that RCW 82.32.805 and RCW 82.32.808 do not apply to this act. The act is declared to apply retroactively and prospectively and takes effect immediately. Affected parties include taxpayers with Washington capital gains, spouses and domestic partners filing returns, and persons who lost monetary or capital assets under the specified criminal statutes and documentation requirements. The bill references related provisions (RCW 82.87.070, 82.87.080, and 82.87.150) but does not include their text here. The extracted material does not define "Washington capital gains," does not specify the precise retroactive time period, and does not show the content or effects of RCW 82.32.805 and 82.32.808, so those details are uncertain from the provided text.

If enacted, Washington taxpayers with capital gains would keep the $250,000 standard deduction per person (and $250,000 total for spouses or domestic partners) and could also reduce taxable gains by claiming losses from money or capital assets taken through certain crimes when the crime included inducing the sale of the asset and the loss is supported by a police report or similar documentation; this change takes effect immediately and applies retroactively and prospectively. The people most affected are taxpayers who realize Washington capital gains and crime victims whose losses meet the listed criminal statutes: they could see lower tax bills or larger deductions, but will need to provide police reports or similar proof to claim the benefit. Some important details are unclear from the provided text: the bill does not define “Washington capital gains,” does not specify how far back the retroactive application reaches, and excludes RCW 82.32.805 and RCW 82.32.808 without explaining the practical effect of that exclusion, so the exact scope and interaction with existing rules remain uncertain.