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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMitt Romney Reaped Huge Tax Benefits Based On 'Active' Role At Bain Capital
Zach Carter Ryan Grim Jason Cherkis
Mitt Romney Reaped Huge Tax Benefits Based On 'Active' Role At Bain Capital
WASHINGTON -- Mitt Romney has repeatedly insisted during the presidential campaign that layoffs and other controversy surrounding Bain Capital companies for the past decade are not his responsibility, because he retired in 1999. When tax experts charged that he benefited from legally dubious tax avoidance strategies employed by Bain, his campaign noted that the investments are kept in a blind trust completely out of his control.
<...>
But according to his 2010 tax return, when the Internal Revenue Service comes calling in April, Romney has a different answer: The presumptive GOP nominee reaps lucrative tax breaks for "active" participation in the private equity firm he founded, as well as a host of other investments...For tax purposes, he claims an active status; for political purposes, he claims to have zero to do with the investments.
The distinction is valuable, for the IRS treats passive and active income and losses differently. If a passive investment loses money, the taxpayer can only write off that loss if passive gains have also been made and only at a 15 percent rate. But active losses can be written off at a 35 percent rate and deducted from the taxpayer's ordinary income. In other words, a taxpayer wants active losses, not passive losses. So by describing many of his investments as active, Romney saves himself millions of dollars in taxes...But under the technical terms of the retirement package that Romney negotiated for himself, he has borne a lighter tax load than most other retired financial professionals. And the unusually large scope of his deductions and the generous rate at which they are recognized have some tax experts questioning their validity...they all appear on a tax document where individuals usually list personal expenses, known as Schedule E. And listing personal expenses as business expenses is not allowed.
In addition, some tax experts are surprised by the size of the deductions he takes as business expenses and the aggressive nature of the deductions.
- more -
http://www.huffingtonpost.com/2012/08/26/romney-bain-taxes_n_1828816.html
Mitt Romney Reaped Huge Tax Benefits Based On 'Active' Role At Bain Capital
WASHINGTON -- Mitt Romney has repeatedly insisted during the presidential campaign that layoffs and other controversy surrounding Bain Capital companies for the past decade are not his responsibility, because he retired in 1999. When tax experts charged that he benefited from legally dubious tax avoidance strategies employed by Bain, his campaign noted that the investments are kept in a blind trust completely out of his control.
<...>
But according to his 2010 tax return, when the Internal Revenue Service comes calling in April, Romney has a different answer: The presumptive GOP nominee reaps lucrative tax breaks for "active" participation in the private equity firm he founded, as well as a host of other investments...For tax purposes, he claims an active status; for political purposes, he claims to have zero to do with the investments.
The distinction is valuable, for the IRS treats passive and active income and losses differently. If a passive investment loses money, the taxpayer can only write off that loss if passive gains have also been made and only at a 15 percent rate. But active losses can be written off at a 35 percent rate and deducted from the taxpayer's ordinary income. In other words, a taxpayer wants active losses, not passive losses. So by describing many of his investments as active, Romney saves himself millions of dollars in taxes...But under the technical terms of the retirement package that Romney negotiated for himself, he has borne a lighter tax load than most other retired financial professionals. And the unusually large scope of his deductions and the generous rate at which they are recognized have some tax experts questioning their validity...they all appear on a tax document where individuals usually list personal expenses, known as Schedule E. And listing personal expenses as business expenses is not allowed.
In addition, some tax experts are surprised by the size of the deductions he takes as business expenses and the aggressive nature of the deductions.
- more -
http://www.huffingtonpost.com/2012/08/26/romney-bain-taxes_n_1828816.html
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Mitt Romney Reaped Huge Tax Benefits Based On 'Active' Role At Bain Capital (Original Post)
ProSense
Aug 2012
OP
Scuba
(53,475 posts)1. OMG, this means Romney .. wait for it ... CAN'T BE TRUSTED!
But then we all knew that.
uponit7771
(90,364 posts)2. This means rMoney is a felon and lied to Mass electoral officials if his 99 - 01 returns show...
...the same thing
ProSense
(116,464 posts)5. Mitt could clear this up by releasing his tax returns. n/t
malaise
(269,188 posts)3. How is this scumbag ReTHUG
running for the highest office in America?
Good fugging grief!
ProSense
(116,464 posts)4. All Mitt does is lie and whine:
Why stash money in the Caymans and Swiss bank accounts if there's no tax advantage as Romney claims?
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=1205245
Romney: Releasing tax returns would violate my religious privacy
http://www.democraticunderground.com/10021193031
Trust Mitt: Releasing his tax returns would be "damaging" and policy details would be "suicidal"
http://www.democraticunderground.com/10021151118
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=1205245
Romney: Releasing tax returns would violate my religious privacy
http://www.democraticunderground.com/10021193031
Trust Mitt: Releasing his tax returns would be "damaging" and policy details would be "suicidal"
http://www.democraticunderground.com/10021151118
spanone
(135,886 posts)7. Mitt: Releasing his tax returns would be "damaging"...admission of guilt. imo
spanone
(135,886 posts)6. he's as crooked as the day is long.....show us your tax returns, chickenshit