Posted on 12/30/2008 7:42:50 AM PST by St. Louis Conservative
We are watching a National Train Wreck in slow motion.
There is one topic I have yet to see discussed, altho I don’t view FR each and every day....:
There are many provisions in the US tax code for CAPITAL GAINS/LOSSES.
Since the higher bracket tax payers are the ones who most likely lost the most in the LOSSES on Wall Street, IMO, it would follow that the taxes collected in the past from this group will be dramatically lower in the April 2009 filings of 2008 income tax forms.
Therefore, where are the research statistics of how much lower the tax revenues will be at the IRS from these meltdowns on Wall Street???? April 2009 might not be a huge increase in taxes sent to Washington.
For those who are self-employed, they are required to pay quarterly payments that amount to at least 90% of their PRIOR year’s tax obligation. If that 2008 OBLIGATION is lower, their 4 payments paid for 2009 taxes can also be dramatically lower.
Am I missing something in my thought?
Altho I am a bookkeeper, I am not a CPA.
Need some help here, please.
It isn’t. You can’t write off more than $3000 in long term capital losses against income in any one year, but you can carry it forward indefinitely”
What is the rule for short term losses?
I don’t see Obama donating/giving HIS MONEY to charities etc.”
Did NObama ever release his tax returns???
“What is the rule for short term losses?”
It’s the same — $3000 max writeoff against ordinary income.
The key is that at the end of the year, you net out your long term and short term transactions against each other. If there’s a net gain, it will be either short or long term, and that’s what you’ll pay tax on. If there’s a net loss, you an deduct 3000 against ordinary income and carry the rest forward. The TYPE of net capital loss above $3000 will either be short or long, and that is the character of what will be carried forward the following year.
Don’t worry about it — your tax program has this down cold. The relevant point raised earlier in the post is that if you have realized losses by selling (i.e., if you give up or if the stocks don’t come back), they’ll be cancelling out a good portion of gains for the next year or two.
What Medoff did is steal their money ~ that makes the loss of their initial (or later) deposits a "theft".
The gains he credited to their accounts don't count. They didn't exist. They were fraudulent.
However, if Medoff credited someone with a gain in this deal and sent them a check, it wasn't really income ~ to the degree the amount(s) didn't exceed their initial or later deposits.
If they counted such payments as income they get to revise their income tax filings for those years to some degree. I couldn't readily find how many years you can go back once you discover the theft.
There are some tax lawyers and accountants who are going to make some good money reworking this, and Uncle Sam will end up paying the victims some tax refunds.
I think the guys most concerned with capital gains taxes sold their shares last month about the 20th. It was mistaken for the “bottom” (which actually comes next month).
They will butcher the goose that lays the golden egg.
Yep, you’re rght about the carryforwards.....at $3000 a year....we know....we have enough for many years because of a year we spent in Canada, and the company’s reimbursements, etc...and our stock sales during that time...soooo complicated.....avoid working outside of US whenever possible....!!!!
bump
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