[Rhodes22-list] Taxes.

[Joseph Hadzima]

Yes the IRS are devils!
 
Once Upon a time, I received stock OPTIONS (not actual stock) from a company after working there 10 years.  The IRS said the options had a value, and wanted their "fair share" (a.k.a. AMT).  This was a good chuck of money, and after 10 years of unpaid OT on many many weekend, I thought I had my nest egg at long last.  I was forced to 1) buy the options, and then 2) sell a bunch to get enough money to pay the tax on something I didn't actually own yet.  I thought when I sold the stock I'd have a capital gain, and would pay the taxes then - like at retirement :-)   BTW the AMT is based upon the stock price at IPO, if the actual price of the stock goes down before you buy and then sell, well that is just tough luck according to the IRS.  So you can get company stock options @ $5.00  it goes to $20.00 on the day of the IPO, and by law can't sell most of for at least 90 days.  IF the price after 90 days is down to $8.00 you can pay to buy/sell and tax then it's worth. On the bright side, the IRS will set you up with easy payment terms.
 
These little companies do the stock option thingy because they don't have pension plans, but if you had to give your entire pension value to uncle Sam more than once, I'd 
 
BTW, after doing this routine at 4 companies, 1 did have a positive effect, which I quickly sent to my daughter;s college for her first semester.   Not a total loss for working so long without a pension plan.  Next lifetime I'll know better, and get a job as the receiver of the taxes :-)
 
 
HADZ (a.k.a. joe)
 


----- Original Message ----
From: Brad Haslett <flybrad at gmail.com>
To: The Rhodes 22 mail list <rhodes22-list at rhodes22.org>
Sent: Sunday, November 12, 2006 5:50:44 AM
Subject: Re: [Rhodes22-list] Taxes.


MJM,

Fan had one of her mutual funds close in 2004 and we rolled it to a new fund
online.  Because we had use of the money for 3 nanoseconds in cyberspace, we
got hit with a substantial capital gains tax.  She had a good perspective,
"even the Communist Party  wasn't this greedy".

Maybe Slim will play "Taxman" by the Beatles on KSLM for us?

Brad


On 11/11/06, Michael Meltzer <mjm at michaelmeltzer.com> wrote:
>
> Worst than that, the people who able to pay the layers/accounts/or move it
> offshore.
>
> -mjm
>
> -----Original Message-----
> From: rhodes22-list-bounces at rhodes22.org
> [mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of Brad Haslett
> Sent: Saturday, November 11, 2006 10:29 PM
> To: The Rhodes 22 mail list
> Subject: Re: [Rhodes22-list] Taxes.
>
> MJM,
>
> You are correct.  Companies don't pay taxes.  They build the cost of taxes
> in to the cost of their goods and services and the consumer pays the
> taxes.
> When companies distribute profits, the shareholders (who are the ones who
> pay taxes to begin with) are taxed again.  It really is that simple.
>
> Brad
>
>
> On 11/11/06, Michael Meltzer <mjm at michaelmeltzer.com> wrote:
> >
> > There is a simpler problem, the only people who will pay taxes will be
> > people with w2 income, everyone else including the company will figure a
> > way
> > out of it. It really that simple
> >
> > -mjm
> >
> > -----Original Message-----
> > From: rhodes22-list-bounces at rhodes22.org
> > [mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of Philip
> > Sent: Saturday, November 11, 2006 8:59 PM
> > To: The Rhodes 22 mail list
> > Subject: RE: [Rhodes22-list] Taxes.
> >
> > Bill,
> >   Not distribution but re-distribution.  I don't like anyone taking from
> > me
> > to provide to others.  That should be charity.  I like to enjoy the
> fruits
> > of my labors, and I resent others enjoying the fruits of my labors when
> > they
> > are not entitled to them.
> >
> > Philip
> >
> >
> > -----Original Message-----
> > From:   rhodes22-list-bounces at rhodes22.org
> > [mailto:rhodes22-list-bounces at rhodes22.org]  On Behalf Of Bill Effros
> > Sent:   Saturday, November 11, 2006 2:37 PM
> > To:     The Rhodes 22 mail list
> > Subject:        Re: [Rhodes22-list] Taxes.
> >
> > Philip,
> >
> > It's always a distribution of wealth issue.
> >
> > Bill Effros
> >
> > Philip wrote:
> > > I don't mind paying my fair share and I don't care if it is going to
> the
> > > Constitutionally authorized appropriations.  I resent paying when it
> > becomes
> > > a distribution of wealth issue.
> > >
> > > Philip
> > >
> > >
> > >  -----Original Message-----
> > > From:         rhodes22-list-bounces at rhodes22.org
> > > [mailto:rhodes22-list-bounces at rhodes22.org]  On Behalf Of
> > > R22RumRunner at aol.com
> > > Sent: Friday, November 10, 2006 2:37 PM
> > > To:   rhodes22-list at rhodes22.org
> > > Subject:      [Rhodes22-list] Taxes.
> > >
> > > Brad,
> > >
> > > I am neither conservation or liberal. My wife swears I'm a closet
> > > conservative, but I deny all.
> > > I am glad to have the opportunity to pay taxes. As a citizen, I accept
> > the
> > > responsibility and make every effort to make my tax returns as
> accurate
> > as
> > > possible.
> > >
> > >
> > > Rummy
> > > __________________________________________________
> > > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> > >
> > > __________________________________________________
> > > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> > >
> > >
> > __________________________________________________
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> >
> > __________________________________________________
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> >
> __________________________________________________
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>
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