In the past two days I've just heard two new INCOME TAX laws. Now add that to the promised tax changes that have been made over the past months....

Well, every year we get about 100-600 tax changes - usually after tax season begins, so if Congress comes back after Nov 4th and starts their usual nonsense I'm gonna be up to my eyelashes in tax changes and people are going to be calling me day and night asking what they can and can't do before the end of the year.

So on the two plans to straighten up the economy -- we're gonna cut out the capital "gains" tax. My question is - WHAT GAIN - most people who sell off are going to have a capital "loss" so what's the point? Unless you sold before the market crashed and then is it going to be retroactive? No one mentioned that.

I can see a little merit in folks being able to take out some of their IRA's or 401K's if they need it to live on without a penalty (these are hard times) and unemployment not being taxed for a specified time or under a limited amount.

The $5000 medical deduction wouldn't help me - I take more than that on a Sch A now and if anyone pays their own med insurance (or thru their company) it's already deductible on the Sch A so I really don't see that one. Just something else to give me a headache explaining it.

I've just got a feeling that whoever wins, I'm gonna be busy explaining why everyone's not going to get ALL their tax dollars back in refunds and I'm gonna be mad at everyone who misspoke during this whole campaign.

Think I'll go take a nap now and rest up for the BIG ONE....

Hugs BD

BarbaraD wrote on Oct 14^th, 2008 at 4:49pm:

So on the two plans to straighten up the economy -- we're gonna cut out the capital "gains" tax. My question is - WHAT GAIN - most people who sell off are going to have a capital "loss" so what's the point? Unless you sold before the market crashed and then is it going to be retroactive? No one mentioned that.

Just because you and I aren't making money doesn't mean no one is.  ;)

I'm gettin' a freakin' headache...

Well, at least you're on the right board!

Part of the reason for the capitol gain change is for those in mutual funds that sell off stocks.  the value of the fund may have gone down, but the stocks sold usually are the ones with a profit, hence capitol gain.  You then are taxed for a gain generated by the fund that does not affect you directly.  Don't understand it fully, but Have seen it happen.  It really bites it to pay a capitol gain on a loss.

Jerry

I don't envy you Barb

I got a headache just reading about you getting a headache!