Ail said:
Kasz216 said:
Ail said:
Kasz216 said:
Ail said:
Kasz216 said:
Ail said:
For tax purpose they are actually not that riskier as you can take advantage of capital losses to reduce your tax rate ( don't sell during a bad market year, keep some investments around till the next year and then sell some of those loosing investments to offset any gain you might make that good year..
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Except... you can't if the Buffet Rule passes... since you have to pay atleast a 25% or 28% tax rate.
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Sure you can, even with the Buffet rule because offseting gains with losses doesn't reduce tax rate per say, it reduces income. The thing on which the 25-28% applies......
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The Buffet Rule is talking about a Minium tax rate.
You aren't allowed deductions on a minium tax rate. That's the whole point of having a minium tax rate.
Obama's been talking about reducing tax deductions for the rich for years. This is a way to do that.
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Where am I talking about deduction ?
Do you actually know how capital gain work ?
All I am saying is that capital investments are not as risky as HappysQuirrel make it seem as you can offset capital gains with capital losses, there is nothing in the current proposal by the US government aimed at changing this. This is the same all over the world...
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Capital losses are deductions.
You can note this by the fact that if you have no capital gains, or your captial gains are lower then your capital losses, the remaing capital losses come out of your income tax.
Under a Minium tax you could not do this. Capital losses wouldn't even count against capital gains.
Aside from which, a capital loss is a loss of real money.
Tell people who lost their retirement funds that capital gains aren't risky or the people on the wrong side of the Dot.com boom.
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LOL.
You need to listen less to Michele Bachman.
Where has anyone suggested that capital losses can not count against capital gains ?
Answer : nowhere, noone...( Noone is suggesting to tax people on income they haven't earned...)
As for the issue of deducting losses from income, it is true in that case it is a deduction but we're speaking of 3k maximum/year , and we 're speaking of people with over 1 million annual income, i hardly think anyone is worried about that... and that's hardly going to affect their tax rate ...
The whole Obama proposal is about ensuring a minimum tax rate on earned income of over 1 million$ , not about taxing you on income you haven't earned...
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Capital gains taxes are applied individually on each sale.
Capital losses then can be deducted from Captial gains.
Furthermore, capital losses can be used as income tax deductions and/or Capital gains losses up to 3 years in the future.
Minium taxes disallow all deductons.
This is just a supercharged alternative minium tax that treats capital gains just like income taxes.
