Here’s a question about bail-ins and taxes.
Jim,
Here’s a question about bail-ins that I’ve not seen anywhere. Your take on this would be greatly appreciated. Thank you.
Let’s say that over a year’s time I’ve made a pre-tax profit in the markets; we will call this 100%, and my Fed/State taxes will be 35%. At this point in time I have the money to pay the taxes.
Before it’s tax time my 100% monies were 80% bailed-in and now I have 20% left, which if I use for taxes I will still owe 15% (that I now don’t have.)
THE question: Will the fed and state governments treat 15% of the bailed-in dollars as taxes paid? My response would be no because the monies didn’t go into fed or state coffers, but a bank’s account. Therefore I would still have to come up with that extra 15%.
If so then this 15% is in effect a double tax isn’t it?
CIGA DGC
DGC,
At the present time and under the full Cyprus model you are totally screwed. You lost your money and have to pay your full taxes.
I would hope this would change under the emergency circumstances. That would require a kinder and more transparent tax collecting organization.
Jim
http://www.jsmineset.com/2013/07/11/jims-mailbox-1308/
Here’s a question about bail-ins that I’ve not seen anywhere. Your take on this would be greatly appreciated. Thank you.
Let’s say that over a year’s time I’ve made a pre-tax profit in the markets; we will call this 100%, and my Fed/State taxes will be 35%. At this point in time I have the money to pay the taxes.
Before it’s tax time my 100% monies were 80% bailed-in and now I have 20% left, which if I use for taxes I will still owe 15% (that I now don’t have.)
THE question: Will the fed and state governments treat 15% of the bailed-in dollars as taxes paid? My response would be no because the monies didn’t go into fed or state coffers, but a bank’s account. Therefore I would still have to come up with that extra 15%.
If so then this 15% is in effect a double tax isn’t it?
CIGA DGC
DGC,
At the present time and under the full Cyprus model you are totally screwed. You lost your money and have to pay your full taxes.
I would hope this would change under the emergency circumstances. That would require a kinder and more transparent tax collecting organization.
Jim
http://www.jsmineset.com/2013/07/11/jims-mailbox-1308/