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Tax Bill


jmp8822
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I received an email form TD Ameritrade that the Senate bill has a FIFO requirement on all stock transactions.  Interesting.

 

Yeah, gotta be one of the stupidest f'ing things in the proposal.

There's nothing stupid about it. I suspect it's actually pretty smart. This provision should bump up tax receipts from capital gains. That in turn will help with scoring of the bill and parliamentary procedures/restrictions (the 1.5 trillion cap). Scoring is similar to saving... every little helps.

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Guest Cameron

I received an email form TD Ameritrade that the Senate bill has a FIFO requirement on all stock transactions.  Interesting.

 

Yeah, gotta be one of the stupidest f'ing things in the proposal.

There's nothing stupid about it. I suspect it's actually pretty smart. This provision should bump up tax receipts from capital gains. That in turn will help with scoring of the bill and parliamentary procedures/restrictions (the 1.5 trillion cap). Scoring is similar to saving... every little helps.

 

It might not be stupid but it is hypocritical seeing as this seems to go against the anti-regulatory stance Republicans are taking. Also exempting hedge funds and mutual funds after they threw a fit and lobbied them is interesting.

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HA! Republicans being hypocritical. That's a new one lol.

 

Anyway, I think this may have some significant impacts in some corners. On this corner for example I think Berkshire will divest of a good chunk of Wells Fargo before this passes through.

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It is only in the Senate version.  I find it amazingly hypocritical that it only impacts individual investors.  The mutual funds industry was able to lobby an exclusion when it first came out last month, so they are exempted.

 

Can you imagine how this will be implemented? I have multiple brokerage accounts? Must I sell only from the account where I made the first purchase?  What if I own shares in an IRA that are older than shares in a taxable account? Would I have to sell from the IRA first?  (That may seem like a stretch - but wash sale rules don't distinguish between IRAs and taxable accounts - so why would this legislation).

 

For the record, I have no objections to paying more income tax if the money is used to pay down the national debt, but if the discussion is about why I should pay more so that someone else gets a bigger tax break, then I can be as petty and territorial as the next guy.

 

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