Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Question? Nobama just said it again...

Posted on 10/28/2008 7:23:20 AM PDT by NedRocker

I am either dumb of he is. Can someone please explain what the "capital gains tax" on small business is all about.

Thanks in advance


TOPICS: Business/Economy; News/Current Events
KEYWORDS: capitalgains; capitalgainstax; smallbusiness; taxes
Navigation: use the links below to view more comments.
first 1-5051-52 next last

1 posted on 10/28/2008 7:23:20 AM PDT by NedRocker
[ Post Reply | Private Reply | View Replies]

To: NedRocker

ALL YOU CAPITAL GAINS IS BELONG TO US!................


2 posted on 10/28/2008 7:25:43 AM PDT by Red Badger (My wallet is made out of depleted you-owe-mium........)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

he has NO clue what he is talking about because his wealth is generated through graft and government salaries.


3 posted on 10/28/2008 7:26:20 AM PDT by ilgipper
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

http://blogs.abcnews.com/politicalradar/2008/08/obama-clarifies.html


4 posted on 10/28/2008 7:27:15 AM PDT by ButThreeLeftsDo (Read FR first.....THEN read Drudge.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

Capitol gains amount to confiscation of work, sweat and blood. Unless like a Kennedy you inherit your wealth.


5 posted on 10/28/2008 7:27:31 AM PDT by stocksthatgoup
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

I’m not sure, either. Unless profits are counted as capital gains, I don’t know if small businesses pay any capital gains taxes. I’ve been wondering if it’s all smoke and mirrors again.


6 posted on 10/28/2008 7:27:49 AM PDT by AnglePark
[ Post Reply | Private Reply | To 1 | View Replies]

To: AnglePark

One day a doctor will tell him he’s got an IQ of 40. Also known as Mentally Retarded.


7 posted on 10/28/2008 7:29:38 AM PDT by massgopguy (I owe everything to George Bailey)
[ Post Reply | Private Reply | To 6 | View Replies]

To: NedRocker; AnglePark

CAPITAL GAINS TAX: The taxable profit derived from the sale of a capital asset. The capital gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fixing up expenses, capital improvements, allowable depreciation, etc.


8 posted on 10/28/2008 7:29:54 AM PDT by IllumiNaughtyByNature (Democrats don't have opposable thumbs and are scared of vacuum cleaners, like my dog.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ilgipper

You forgot affirmative action and quotas, both he and his wife did well on those too.


9 posted on 10/28/2008 7:30:23 AM PDT by Abathar (Proudly posting without reading the article carefully since 2004)
[ Post Reply | Private Reply | To 3 | View Replies]

To: AnglePark

Small businesses generally don’t have to worry about capital gains. Normally the income of a small busioness is income derived fromoperations, not the appreciation of capital holdings.

I think Obama has his head in his Democrat ass.


10 posted on 10/28/2008 7:30:46 AM PDT by John Valentine
[ Post Reply | Private Reply | To 6 | View Replies]

To: NedRocker

Profit realized on non-inventory items purchased at lower price. Typical capital gains items are stocks, bonds, , Real Estate....


11 posted on 10/28/2008 7:30:47 AM PDT by freebilly
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker
If a small business ( either s-chapter S or LLC or another form of a business entity) has some item such as property, stock, a division it wants to sell. The profit that small business makes is taxed as captial gains.

The the owner of the Dolphins he is selling before Obama and said he would rather give the extra tax Obama wants to Charity than Obama.

12 posted on 10/28/2008 7:31:19 AM PDT by scooby321 (Cai)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AnglePark

Profits can’t be capital gains unless you invest in something (office building, equipment?) and then sell it for a gain. Individuals could invest in stock in a small business presumably, and sell it for a gain but none of this rhetoric makes any sense....


13 posted on 10/28/2008 7:31:56 AM PDT by luv2ski
[ Post Reply | Private Reply | To 6 | View Replies]

To: AnglePark

Obama’s an idiot. Individuals have capital gains; corporations have profits. Of course, Demoncrats immediately modify the word “profits” with the word “windfall” if your company has the word “Oil” in it.


14 posted on 10/28/2008 7:32:24 AM PDT by Right Cal Gal (Abraham Lincoln would have let Berkeley leave the Union without a fight)
[ Post Reply | Private Reply | To 6 | View Replies]

To: IllumiNaughtyByNature

And that was always my assumption, is that capital gains are associated with the sale of property, specifically (if not exclusively) real estate. (I have a small business associated with the mortgage industry.)

IMHO, when he makes it a major talking point the “average” American think he’s doing something for every small business.


15 posted on 10/28/2008 7:33:12 AM PDT by AnglePark
[ Post Reply | Private Reply | To 8 | View Replies]

To: NedRocker

Invest in a building for $500K for your business, sell it for $2M ten years later when you decide to retire. $1.5M is capital gains and subject to that tax right off the top.


16 posted on 10/28/2008 7:33:16 AM PDT by Abathar (Proudly posting without reading the article carefully since 2004)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker
The owner of the MIAMI DOLPHINS (per Drudge) is looking to sell his shares before Obama is elected!!!

That should tell us all something. I'm looking to sell off my shares before Jan. if the ONE is elected! He'll get NO share of my stocks!

17 posted on 10/28/2008 7:33:20 AM PDT by blondee123 (Sarah Palin is the cement holding McCains campaign together!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

I heard him say that, too. These people want to raise the capital gains tax but do not what what a capital gain is, or how it is taxed. Nor can they distinguish between a profit and a capital gain. Colossal ignorance and arrogance combined. Oh, I forgot, this guy went to Harvard. Woe betide our country.


18 posted on 10/28/2008 7:33:30 AM PDT by 3AngelaD (They screwed up their own countries so bad they had to leave, and now they're here screwing up ours.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

This is a smoke screen that he throws out to the bots to show how much he’s doing for small business. Most wouldn’t know a capital gain if it hit them in the patooty, and don’t know that you have to sell an asset to aquire a capital gain. So all of us small business people will have to sell our businesses to qualify for the capital gains cuts he says he’ll give us.


19 posted on 10/28/2008 7:34:19 AM PDT by graywaiter (Gotta love those gun tote'n mommas.......)
[ Post Reply | Private Reply | To 1 | View Replies]

To: stocksthatgoup

“Unless like a Kennedy you inherit your wealth.”

There’s a death tax for that.


20 posted on 10/28/2008 7:34:32 AM PDT by Tublecane
[ Post Reply | Private Reply | To 5 | View Replies]

To: NedRocker

Obama Hussein - You make it, we take it.


21 posted on 10/28/2008 7:35:11 AM PDT by listenhillary (4 legs good, 2 legs baaaad!, ~~ Obama Hussein - You make it, we take it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

He doesn’t know what he’s talking about on any subject. I’ve never seen anyone pass through more high-priced education and have so little of it rub off on him. This is why he doesn’t speak much without a written script. He is plain ignorant.


22 posted on 10/28/2008 7:36:43 AM PDT by Paine in the Neck (Nepolean fries the idea powder)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

Obama means that anytime you succeed in your small business and increase your profitability, the government will capitalize on your gain by taxing you more and more........../s


23 posted on 10/28/2008 7:37:57 AM PDT by OB1kNOb ("I guarantee you itÂ’s (a testing of America) gonna happen." - "Plugs" Biden regarding Obama)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker
I think it is a case of Obama promising something that is largely useless. Unless the small business is a company which has sold stock (as opposed to a sole propriotorship, partnership, S-Corp or LLC), it will only have a capital gain when it is sold - and even then the capital gain would be the owner's, not the company's. Most of the money a small business makes would either be profit listed on the owners 1040 or the company's 1040 if it is a chapter C corporation. Maybe small companies dealing in real estate would be affected, but in general it is as useless as telling small companies that they won't have to pay property taxes on their nuclear reactors.
24 posted on 10/28/2008 7:38:27 AM PDT by KarlInOhio (Obama: Spread the Wealth = Marx: From each according to his ability, to each according to his needs)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

If your small business is a partnership, corporation, LLC, etc., then when you attempt to sell it, Uncle Sugar is going to hammer you, convict style.


25 posted on 10/28/2008 7:38:46 AM PDT by Petronski (Please pray for the success of McCain and Palin. Every day, whenever you pray.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 3AngelaD

He doesn’t know anything about capital gains — but I bet he knows EVERYTHING about affirmative action, quotas, disability payments, and welfare.

You know, he was a trainer for ACORN!!!!!!


26 posted on 10/28/2008 7:39:03 AM PDT by i_dont_chat (The elephant is dancing for the lady from Alaska)
[ Post Reply | Private Reply | To 18 | View Replies]

To: John Valentine

Depends on the business. A lot of family businesses own the building where the business is conducted. In the case of retail stores, there is often a huge appreciation. If the business is liquidated, or just needs to sell the property to move to a new location better suited to current needs, the capital gains tax could also be huge. A couple of years ago, a family owned hardware store in my “upscale” hometown decided to close, after nearly 100 years in business, due to health problems of one of the owners, and lack of interest from the next generation in continuing the business. The building probably sold for close to a million dollars, due to the location, and had probably been bought for a few hundred. It’s doubtful they had a lot of documentation of major improvement expenditures either, since the building hadn’t undergone any major changes, and since most minor work (replacing windows, resurfacing the roof, etc) would have been done by family members in their spare time, during slow spots in the business day. The appreciation in the value of the building probably represented 10 years or more of net income.


27 posted on 10/28/2008 7:40:38 AM PDT by GovernmentShrinker
[ Post Reply | Private Reply | To 10 | View Replies]

To: Paine in the Neck
He doesn’t know what he’s talking about on any subject. I’ve never seen anyone pass through more high-priced education and have so little of it rub off on him. This is why he doesn’t speak much without a written script. He is plain ignorant.

He will be the first Affirmative Action President, and more importantly, the Presidency of the United States for the next four years, will be his longest HELD JOB EVER!
28 posted on 10/28/2008 7:41:42 AM PDT by roses of sharon (When the enemy comes in like a flood, the Spirit of the LORD will put him to flight (Isaiah 59:19)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Right Cal Gal

So in reality the Cap gains tax is a tax on the sale of an asset not a product.That is just wonderful!!! He won’t tax you as much when you have to liquidate your small business. What a great REFORMER!!! /sarc


29 posted on 10/28/2008 7:42:22 AM PDT by NedRocker (Jekyll Island revisited 2 years later)
[ Post Reply | Private Reply | To 14 | View Replies]

To: NedRocker
I am either dumb of he is

Hmmm.... lets take another look...

30 posted on 10/28/2008 7:44:02 AM PDT by TheBattman (Why do we still see "donate" auto-posts on EVERY STINKING THREAD??!!!!!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AnglePark

We were a retail store organized and taxed as S-corp.
The profit/loss from business was figured on one form, then it was put on our 1040 and we were taxed at the personal rate. There’s a reason that many may realize a TAX increase as a business owner. Now to the question - we bought the store using cash we had, loan from the PO, and SBA loan, and a 2nd mortgage on our home. The cost of that business was the starting point, or “basis”. Improvements we made, purchases of fixtures, shelving, equipment like computers, etc. were tracked. In the end, when we sold, we got MORE out of it than we paid. The increase of the value of the business, and that includes intangibles such as customer base, reputation, etc, is how we were taxes, capital gains. We “gained” bought for say 135,000 and sold for 200,000 and you consider the cost if things we put into it, say that was 20,000 so the basis was 135,000+20,000 for 155,000. Sell for 200,000 and the gain is 45,000. You would be taxed on that.
We also run a quilting business from home - if we bought a quilting machine, depreciated it for 3 years and after 3 years it was valued for tax purposes at 8,000, but sold it for 9,000, there’s a capital gain. SO, even TINY businesses DO have to worry about capital gains! You can have gains for many reasons, even stock investments, etc. are included.
We have various small investments and get dividends, and the increases in the value of the investments, you can pay capital gains taxes.
Buying and selling (flipping) a house, can get you a gain unless it’s a primary residence.
An increase in the capital gains tax will hurt businesses of ALL sorts and sizes, AND people who have retirement accounts in many cases. Watch for wall street to puke if that tax is raised!!


31 posted on 10/28/2008 7:45:01 AM PDT by shadowspapa (You will be assimilated. Resistance is futile.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Tublecane

Not if you’re a Kennedy. They had Rose listed as living in Florida even though she hadn’t seen the north side of the Sagamore bridge in tewenty-five years. Caroliyn and John also got Jackie O’s estate taxed as income instead of the higher rate.


32 posted on 10/28/2008 7:47:11 AM PDT by massgopguy (I owe everything to George Bailey)
[ Post Reply | Private Reply | To 20 | View Replies]

To: NedRocker

When they are forced to liquidate their assets due to his confiscatory income taxes, he can then hit them again for capital gains.


33 posted on 10/28/2008 7:51:28 AM PDT by SampleMan (Community Organizer: What liberals do when they run out of college, before they run out of Marxism.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paine in the Neck

Actually, I suspect he knows it as well as anyone. His arrogance compells him to believe, as it does to all on the Left, that WE are too stupid to know the distinction. Recall his answer in response in the primary debates. He admitted to knowing raising capital gains taxes reduces revenues. However, he felt it important that the productive be punished [pejorative mine].


34 posted on 10/28/2008 7:51:50 AM PDT by Tucson
[ Post Reply | Private Reply | To 22 | View Replies]

To: TheBattman

f=r.... pretty close on keyboard...now to the subject at hand. Your thoughts Mr Spellchecker.


35 posted on 10/28/2008 7:54:33 AM PDT by NedRocker (Jekyll Island revisited 2 years later)
[ Post Reply | Private Reply | To 30 | View Replies]

To: GovernmentShrinker

Sure, at the liquidateion of a business there could be all kinds of capital gains. You could also have this issue if selling a long-held piece of real estate as part of a move.

But these are extraordinary situations, not normally part of ordinary day-to-day business.


36 posted on 10/28/2008 7:56:44 AM PDT by John Valentine
[ Post Reply | Private Reply | To 27 | View Replies]

To: NedRocker

That’s right up there with

“most of those capital gains are in 401k’s”

in response to the statement that 70+% of taxpayers reported capital gains on their income taxes.

(pssst, Barry - if it’s in a 401k/IRA, it doesn’t get reported on your income tax return)


37 posted on 10/28/2008 7:58:47 AM PDT by MrB (0bama supporters: What's the attraction? The Marxism or the Infanticide?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AnglePark

I would surmise that it would be the difference of the original start up cost and the value when sold to another entity. Example the original Banana Republic’s start up cost measured against what the owners received when they sold it to Gap.


38 posted on 10/28/2008 8:06:54 AM PDT by xkaydet65
[ Post Reply | Private Reply | To 6 | View Replies]

To: NedRocker

It’s not really all that relevant for most, because most assets depreciate fairly quickly (if depreciate is the proper word for that? ask accountant). For example, let’s say that you build a house that’s worth more than all of the costs of building it. If you sell it at a profit immediately, you’ll pay the capital gains tax (if I remember correctly). If you live in it long enough before selling it, you don’t have to pay the tax. ...lower capital gains tax per length of time spent using the property yourself.

...hope that helps.


39 posted on 10/28/2008 8:23:30 AM PDT by familyop (cbt. engr. (cbt), NG, '89-'96, Duncan Hunter or no-vote)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NedRocker

...meant to say that it’s not very relevant for as many people now because of the deflationary trend regarding real property and the like.


40 posted on 10/28/2008 8:26:09 AM PDT by familyop (cbt. engr. (cbt), NG, '89-'96, Duncan Hunter or no-vote)
[ Post Reply | Private Reply | To 1 | View Replies]

To: stocksthatgoup

Unless like a Kennedy you inherit your wealth and votes.


41 posted on 10/28/2008 8:40:25 AM PDT by Vaduz (and just think how clean the cities would become again.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Red Badger

“ALL YOU CAPITAL GAINS IS BELONG TO US!................”

HAHAHAHAHAHAHAAAA..... shame on you :-D


42 posted on 10/28/2008 8:56:19 AM PDT by toomuchcoffee ( Yeah, I'll help you buy some real estate)
[ Post Reply | Private Reply | To 2 | View Replies]

To: John Valentine

In bad economic times, such moves are more likely to be necessary, and this type of scenario is far more typical of small and/or family-owned businesses than of other businesses.


43 posted on 10/28/2008 8:57:15 AM PDT by GovernmentShrinker
[ Post Reply | Private Reply | To 36 | View Replies]

To: toomuchcoffee

44 posted on 10/28/2008 8:58:25 AM PDT by Red Badger (My wallet is made out of depleted you-owe-mium........)
[ Post Reply | Private Reply | To 42 | View Replies]

To: toomuchcoffee

http://i169.photobucket.com/albums/u207/jackie_1947/smileybiggrinrockinghead.gif


45 posted on 10/28/2008 8:59:06 AM PDT by Red Badger (My wallet is made out of depleted you-owe-mium........)
[ Post Reply | Private Reply | To 42 | View Replies]

To: toomuchcoffee

somebody stole my smiley...........


46 posted on 10/28/2008 8:59:41 AM PDT by Red Badger (My wallet is made out of depleted you-owe-mium........)
[ Post Reply | Private Reply | To 42 | View Replies]

To: NedRocker
google is your friend.....definitions.
47 posted on 10/28/2008 9:04:41 AM PDT by tioga
[ Post Reply | Private Reply | To 1 | View Replies]

To: graywaiter

Bingo. It is supposed to sound good to everyone else but few small businesses would meaningfully benefit. Hard to see how it would make it easier to hire staff.


48 posted on 10/28/2008 9:10:50 AM PDT by nascent skeptic ("Obamatron, you will awaken from deep trance on Nov. 5th to a McCain Palin landslide...")
[ Post Reply | Private Reply | To 19 | View Replies]

To: nascent skeptic

Yep, smoke & mirrors. Oh, but don’t forget, he’s gonna give us a 3K tax break for creating new jobs! I’m waiting to see the small print on that one. Wonder how long we’d have to keep the employee to get the 3K.


49 posted on 10/28/2008 9:27:18 AM PDT by graywaiter (Gotta love those gun tote'n mommas.......)
[ Post Reply | Private Reply | To 48 | View Replies]

To: graywaiter
Oh, but don’t forget, he’s gonna give us a 3K tax break for creating new jobs! I’m waiting to see the small print on that one. Wonder how long we’d have to keep the employee to get the 3K.

And what entitlements will need to be granted to the employee? My contractor neighbor retired after 40 years and said towards the end, it was always better just to pay towards the high end of the scale and use temporary staff.

50 posted on 10/28/2008 10:18:35 AM PDT by nascent skeptic ("Obamatron, you will awaken from deep trance on Nov. 5th to a McCain Palin landslide...")
[ Post Reply | Private Reply | To 49 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-52 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson