LookieNoNookie
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quote:
ORIGINAL: DomKen
Abusing his own church:
http://www.bloomberg.com/news/2012-10-29/romney-avoids-taxes-via-loophole-cutting-mormon-donations.html
I'm no fan of churches but "renting" their non profit status to save a few bucks in taxes? Just how selfish do you have to be to stoop to that?
"When individuals fund a charitable remainder unitrust, or “CRUT,” they defer capital gains taxes on any profit from the sale of the assets, and receive a small upfront charitable deduction and a stream of yearly cash payments.
The money is all growing tax free and he only pays tax on what is distributed to him."
So let's see how this works:
1) Guy donates $1,000,000.00 and gets to deduct $1,000,000.00 of his income. Pretty normal stuff.
2) Knowing that his tax rate is somewhere around 15%, this saves him $150,000.00 on his taxes for the year of the deduction. Ergo, it actually cost the man $850,000.00 in real, out the door money to give the church $1,000,000.00.
3) The money, when the Trust closes (or upon the death of the Trustee's, in this case, Ann and Mitt Romney), the money must be disbursed to a legitimate charity (if it were to be given to the Romney Estate, that wouldn't qualify then, nor today, ergo, it must go to an IRS approved charity that has no connection to him or his family).
4) Like any investment (which, a Trust such as this was entirely legal at the time), if it's profitable, it produces an income....while the Trust retains the original asset and....like all Trusts, any disbursal can only be either principal or income (profits). The only asset that can be disbursed without breaking the Trust is "profit" (or, income), ergo, the only taxable event due from the Romney's income, which arises only from their then current tax rate, are the profits (income deriving from the asset), putting still more money into the hands of the federal treasury.
5) Lastly, and again, the Trust retains the original asset or, the Trust is broken via IRS rules, both then and now. Since the Trust hasn't been broken, either a) the Romneys are receiving zero income because the Trust failed in its intent (and they get nothing more than the satisfaction of having been benevolent, generous and giving, in magnitudes of order far exceeding what more than likely the top 100 CM'rs combined have provided to charity), which was to remain at the size originally instated and to distribute profits from the investments made therein or b).....they are paying 15% onincome from a $1,000,000.00 (or more) investment Trust wherein which at minimum,. the principle asset (the $1,000,000.00) will eventually go to a charity of their choosing while paying annually, 15% on every dime that falls out of same.
And just for the record, for those not normally knowledgeable about such things, when the Trust dissolves, any increase in its value is still deemed "principal", not income, so the ONLY thing the Romneys will ever receive from this asset is the annual investment return over and above the principal itself....any capital gains "deferment" would go to the beneficiaries of the Trust on dissolution....not the Romney's. They (the beneficiaries) would pay any capital gains due on the increase in valuation of said asset.
So.....exactly how is it again that he's fucking the system?
I admit I'm pretty stupid but, paying a million bucks that he got a 150 thousand dollar benefit from (ultimately costing him 850 grand to cause to occur) and now paying his full legal share of taxes on any income that arose from HIS OWN money.....that's fucking who again?
Help a brother out here.....
< Message edited by LookieNoNookie -- 10/30/2012 8:22:50 PM >
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Just how far will Mitt go to avoid taxes? - 
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