The People For Bernie Sanders 2016 Yesterday at 452pm Ever Ben Moser benjamin moser If you're applauding Trump's gaming of the system I never want to hear your thoughts about who's taking advantage of welfare again Ever 629 AM 02 Oct 16 from Brookline MA Luke Comment Share Top Comments Three common strategies used to reduce tax liability 1 Reinvesting 2 Charitable contributions 3 Not making money Taking a tax deduction for investing loss is NOT gaming the system If you invested $2 million lose S1 million this year then make S1 million next year you didn't make $1 million You broke even You don't owe any taxes for getting your money back That's how the system works Learn how the tax system works before you pop off again Ever -WAC The media and Clinton supporters have been fixated on Trump's tax returns recently renewed over the weekend as the New York Times published his leaked 1995 tax returns 1 which is painting his deduction for a $916 million loss as some kind of scheming dishonest tactic to evade taxes From the source article Donald J Trump declared a $916 million loss on his 1995 income tax returns a tax deduction so substantial it could have allowed him to legally avoid paying any federal income taxes for up to 18 years records obtained by The New York Times show The 1995 tax records never before disclosed reveal the extraordinary tax benefits that Mr Trump the Republican presidential nominee derived from the financial wreckage he left behind in the early 1990s through mismanagement of three Atlantic City casinos his ill-fated foray into the airline business and his ill-timed purchase of the Plaza Hotel in Manhattan Tax experts hired by The Times to analyze Mr Trump’s 1995 records said that tax rules especially advantageous to wealthy filers would have allowed Mr Trump to use his $916 million loss to cancel out an equivalent amount of taxable income over an 18-year period1 The ignorant such as the one who made the post shown on the left are up in arms OMG no taxes for 18 years? So unfair! Y do I have to pay taxes when rich boy doesn't! Cheater! Deadbeat! This is highly unethical reporting Never mind the egregious and illegal invasion of privacy 2 which could land felony charges against the NYTimes the headline is misleading and is a conjuncture with baseless assumptions Although Mr Trump’s taxable income in subsequent years is as yet unknown a $916 million loss in 1995 would have been large enough to wipe out more than $50 million a year in taxable income over 18 years1 They admit that they have no idea how much money Trump had made since 1995 but using a guesstimate of Eh I dunno let's call it $50 million What's 916 divided by 50? So that'd be 18 years Wait call it 2 decades Yeah that sounds better Note that this is the New York Times not Huffington Post For all we know Trump could have made it all back a few years later and used up this deduction Or he could have kept on losing money and adding to the deduction indefinitely which would actually worry me more than if he were a tax dodger So is that deduction illegal? Even the same NYTimes article says there's nothing wrong with it The tax experts consulted by The Times said nothing in the 1995 documents suggested any wrongdoing by Mr Trump1 A CPA stated that not only is it legal it's completely normal and expected Barry Hall a Managing Partner at Kruggel Lawton CPA I can tell you it's not unusual especially in the initial years of a business to not have successful years He says Trump did what most businessmen would You certainly don't wanna pay taxes if you're losing a lot of money I don't think anybody does 2 Here's the deal If you invested $2 million in a company and it lost $1 million this year you get to claim that as a carryover deductible loss Then if you make back the $1 million next year you could apply the $1 million loss from this year against it and have $0 tax liability because you didn't make any money You're back to the $2 million that you started with with $0 profit or gains3 You only broke even Is it fair? Actually no it's not When you factor in the opportunity cost and risk you've actually suffered an economic loss even if the accounting says $0 But you can't take a deduction for intangible loss so too bad The only difference between Trump and the rest of us 99-percent is we don't have $916 million to lose How is that different than welfare? In order for an investor to claim a deduction he has to lose money first That $916 million loss is part of a larger investment which paid for jobs and materials which is also indirectly jobs Trump risked his own money and lost it in the process of creating jobs to earn that deduction Meanwhile someone earns their welfare paid by us taxpayers by simply existing Another possible tax avoidance strategy which is legal not to be confused with tax evasion is to reinvest your profit to defer tax payments There are several methods or programs each with various requirements codes restrictions etc that must be followed But the basic concept is like this Note this is VERY simplified Say you had invested $1m in something and sold it for $2m Congratulations you've created $1m in value! And now you have to pay taxes on that $1m But say you reinvest the entire $2m into another company You didn't take a penny of that profit out for personal use By letting it ride without taking money off the table then you didn't actually make any money However if that $2m reinvestment is then sold for $4m that's recognized as a $3m profit $4m minus the initial basis of $1m rather tha a $2m profit over your reinvested $2m Is that good to let investers postpone tax payment? Well first it promotes reinvestment Hurry gotta create more jobs with that money before the IRS takes it! Second it enables individuals to invest in something that could generate a profit and thus presumably something consumers want Rather than let the government squander it by sending aid to people who hate us Then there are charitable deductions The issue is that many charities or foundations are fronts to launder money to either avoid taxes or to channel funds from another source $1000000 of the Clinton's $1042000 in tax deductable charitable donations went to the Clinton Family Foundation 4 So she took a tax deduction for donating to herself To be fair Romney was caught doing the same when he released his tax returns donating top the Mormon church and his family ran foundation The difference is the media went after Romney for it but giving Clinton a pass 1 httpwwwnytimescom20161002uspoliticsdonald-trump-taxeshtml 2 httpwsbtcomnewslocallocal-experts-break-down-trump-tax-return-leak 3 httpwwwbankratecomfinancetaxescapital-losses-can-help-cut-your-tax-billaspx 4 httpswwwdocumentcloudorgdocuments3011306-Hillary-Clinton-Just-Released-Her-2015-Taxhtml#documentp1 Meme

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found @ 541 likes ON 2016-10-04 21:46:17 BY astrologymemes.com

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