General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThom Hartmann predicts that Romney's 2009 tax return might very well show ZERO taxes paid.
Something about carrying the losses on capital gains.
Demonaut
(8,916 posts)no way he's releasing more returns, too damning
FrenchieCat
(68,867 posts)Giving us 1 year of returns ain't close to answer questions folks are posing about this man's method of paying and smaller tax rate than too many of us!
hifiguy
(33,688 posts)finish him off once and for all. There is no way to sell to the public a candidate who is worth $250 million and paid no taxes. None.
former9thward
(32,006 posts)It only shows Hartmann knows nothing about taxes. You can only charge $3000 from past losses.
HangOnKids
(4,291 posts)Why he has a radio show is outrageous! Plus all the stuff he just pulls out of his ass with no research is amazing.
former9thward
(32,006 posts)you shouldn't spout off on a radio show about how much taxes someone might be paying.
gateley
(62,683 posts)carried to NEXT year. So that's $6000 you can defer. Right?
Capital Loss Limitations
If your total capital losses exceed your total capital gains for the whole year, then you have a net capital loss. Net capital losses are deductible up to a limit of $3,000 per year. Net capital losses in excess of the $3,000 limit are carried forward to next year's taxes.
http://taxes.about.com/od/taxglossary/g/Capital_Loss.htm
former9thward
(32,006 posts)You can carry losses up to the $3000 a year limit for three years (forward or backward). The point is that the ability to take $3000 in losses would mean nothing to someone of Romney's income. No matter what he has in stocks, etc which may have gone down in 2008, it would mean nothing to his deferred income from Bain, plus other interest and speaking fees.
gateley
(62,683 posts)former9thward
(32,006 posts)But they would have to have all their monetary assets in stock, bonds and the sum total of what they sold would have to be a loss. Also they would have to have done no work whatsoever (speeches, book sales, etc.) That is not a practical reality because people of that wealth always have income producing assets such as bank accounts, treasury bonds, etc.
gateley
(62,683 posts)joeglow3
(6,228 posts)A lot of joint ventures in Low income Housing are designed to lose money and kick off huge credits. It is possible to make a lot of money through other means and then have investments that kick off tax credits, reducing your liability to zero.
gateley
(62,683 posts)joeglow3
(6,228 posts)former9thward
(32,006 posts)I was thinking of going backward and you can only amend returns for three years back.
joeglow3
(6,228 posts)However, I cannot say for certain. He made no estimated tax payments in 2010. He applied an overpayment from his 2009 return for $1.4M & had an extension payment of $3.2 M. In order to avoid underpayment penalties, you need to pay in 90% of the CY liability or pay 110% of your PY liability (in equal installments). Given that he paid no interest and would not have met the 90% of CY test, the $1.4M overpayment applied had to represent at least 110% of his PY liability.
Beyond, that, I cannot tell for certain.
That said, I always enjoyed preparing returns like his - very complex.