Writeoff a loss of 1B then not pay taxes for 15-20 years?

[Geneman]

Can someone explain this to me? ( This is not meant to be parfy or anything, simply a request for knowledge.) Or to generate controversy, heaven forbid.

So to the dollar head/bean counters out there in our brain trust: how are these two things even connected? It seems these degrees i have render me still unable to understand the economic "principles " ( and i use that term very loosely...) behind it.

thanks Frank

[daepp]

Are you asking abut the tax loss carry-forward rules?

[NoRush993/951]

Losses can carry forward and offset future income. Nothing wrong with that.
Sounds similar to the government's current budget plan.

[wildthing]

Hmm I thought for individual tax payers the maximum deduction is $3000 per year, hence the carry over. So unless you as an individual had zero income, or tax is under $3k, you would still pay... Though I am no tax expert.

[NoRush993/951]

Originally Posted by wildthing

Hmm I thought for individual tax payers the maximum deduction is $3000 per year, hence the carry over. So unless you as an individual had zero income, or tax is under $3k, you would still pay... Though I am no tax expert.

That limit is for deduction against W2 type earned income after offsetting current gains against past/current losses.

[nota]

passive vs active losses are treated very very different

and the trump's losses were likely active but untaxed funds
ie unrealized value that was also untaxed

btw 3k is years out of date 25k is the current passive loss allowance
the excess can be carried forward to future years

but still shows the BIG LIE that the rich are over taxed

[dafischer]

Back to PARF with you, ya grumpy old fart.

[nvr2mny]

He is using the system our pundits put in place for them selves, first and foremost. He's just got enough smart people on his team to use the system to his advantage. NOTHING wrong with that, unless of course you're running for president.

[island911]

fwiw(nota) Hillary did the exact same thing. Clinton Campaign Admits Hillary Used Same Tax Avoidance "Scheme" As Trump | Zero Hedge

Just like taking a home mortgage interest deduction. (some call any deduction a "loop hole")

[NoRush993/951]

I came across my grand parent's first tax return from 1941, the first year of the tax system we now endure. It was one page on one side only. The tax rate was a flat 3%. It was titled "Taxes to Fight the Axis". I kid you not. In 1943 they changed the name on the tax form to what we have now.
So a simple form with a flat 3% tax with no allowed deductions has morphed into all this crap we call required by law today. I say start over.

[stomachmonkey]

I used the same legal remedy to offset a six figure loss from one year in subsequent years.

My accountants call.

It's why I've had him 20+ years and am sweating the day he finally retires.

It's a story because of the size of the loss which IMHO is the real story.

Such a phenomenal businessman

Lost a billion dollars due to multiple bad deals / decisions, and arrogance.

[DaveE]

Originally Posted by island911

fwiw(nota) Hillary did the exact same thing. Clinton Campaign Admits Hillary Used Same Tax Avoidance "Scheme" As Trump | Zero Hedge



Just like taking a home mortgage interest deduction. (some call any deduction a "loop hole")

Looks like the Clinton tax bill was around 3.5 mil. Not quite 0.


Sent from my iPhone using Tapatalk

[Jim Richards]

Some people round up, others round down.

[Jim Richards]

Here's a laugh from the way-back machine:

May 9, 2016:

Trump changes tune on tax hikes for wealthy Americans | Reuters

U.S. Republican presidential candidate Donald Trump said on Sunday he was open to raising taxes on the rich, backing off his prior proposal to reduce taxes on all Americans and breaking with one of his party's core policies dating back to the 1990s.

"I am willing to pay more, and you know what, the wealthy are willing to pay more," Trump told ABC's "This Week."

[cockerpunk]

Originally Posted by nvr2mny

He is using the system our pundits put in place for them selves, first and foremost. He's just got enough smart people on his team to use the system to his advantage. NOTHING wrong with that, unless of course you're running for president.

he put it in place for himself.

and its absolutely wrong.

[fintstone]

Seems to me that anyone but an idiot would write off losses if the tax code allowed it. I wrote off losses in the market when it crashed and carried them forward for years (due to the $3K limit per year) and write off mortgage interest every year...as well as rental property losses. I would much rather always have huge gains and pay a crap load of taxes...but, no one is perfect.

Bigger losses, bigger write-offs.

[Hugh R]

Why is it wrong? Your congress person wrote the tax laws. Carried forward losses, I did it on a spec house I built 25 years ago. Still done by Viacom, and GE.

[Jim Richards]

Losing a Billion is pure genius. Make losing great again.

[fintstone]

Originally Posted by Jim Richards

Losing a Billion is pure genius. Make losing great again.

Losing a Billion to make ten Billion seems pretty bright. I wouldn't mind being that great.

Are you guys talking politics in OT again?

[Jim Richards]

What ten billion? Don't sell yourself short. You might be every bit as brilliant as Trump.