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The market is up-taxes are low

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    The market is up-taxes are low

    Microsoft Corp. Chief Executive Steve Ballmer sold $1.34 billion of Microsoft shares in recent days, his first share sales in the company since 2003.~WSJ

    The treasury may see a year end unexpected bonus.

    #2
    The anticipation of Capital Gains jumping from 15% to 20% at the end of the year may result in all kinds of trading. It may depend on how soon Congress extends the expiring tax provisions.

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      #3
      Pending Sales

      Already getting questions from clients wanting to sell real estate. Only yesterday a client wants to sell 40 acres for $750,000. We are approaching the time of year where it would be difficult to conduct a sale involving a loan, and actually have a "closing date" before January 1.

      Normally such a transaction carries the same date as the "closing date."

      Is it possible to record the transaction with the date of the SALES CONTRACT instead of the closing date? With legislation pending, this might save some folks a ton of money.
      Keep in mind that under the law in almost every state, such a contract is always contingent upon financing and funds do not change hands until the date of closing.

      Of course, this question only applies if there is financing involved. If cash is involved, there is no such "closing". If you can find a diligent attorney, you can get a cash transaction recorded the same day.

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        #4
        My quick response would be that a sale has taken place when title changes hands, but I'll be interested in hearing what others have to say on the subject.
        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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          #5
          You're so right, John. A sales contract is only a promise to pay and obtain title, and may fall through at any time before actual closing.
          ChEAr$,
          Harlan Lunsford, EA n LA

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            #6
            As Yogi Berra would say "it ain't over until it's over." It is over when you get the deed at closing with your name on it.

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              #7
              Originally posted by jimmcg View Post
              As Yogi Berra would say "it ain't over until it's over." It is over when you get the deed at closing with your name on it.
              Provided, of course, you took the fork in the road.
              ChEAr$,
              Harlan Lunsford, EA n LA

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                #8
                But we do report sales of securities on the trade date, not the settlement date. I don't know about contingencies. If the buyer fails to provide funds by the settlement date, is the transaction canceled or does it go through and the buying broker resell the securities to fund the transaction?

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                  #9
                  Originally posted by DonPriebe View Post
                  But we do report sales of securities on the trade date, not the settlement date.
                  That is a rule that applies to securities traded on an established market. That rule does not apply to private stock sales or any other sale of a capital asset. I would assume the rule allows for the trade date because trades on an established market are considered done deals on the trade date with no right to back out after the trade. You can imagine the havoc that would be created on the stock exchange if traders could undo their trades after the day is done.

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