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    more "simplification"?

    Proposal would make us adjust for inflation rather than just using cost basis..... https://www.nytimes.com/2018/07/30/u...imes&smtyp=cur

    #2
    Originally posted by kathyc2 View Post
    Proposal would make us adjust for inflation rather than just using cost basis..... https://www.nytimes.com/2018/07/30/u...imes&smtyp=cur
    Who is going to determine the adjustment for inflation?

    The client?

    Us preparers?
    Jiggers, EA

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      #3
      This is not a new idea

      I believe some European and Asian countries have similar tax laws where the original purchase price of an asset is indexed for inflation and then long capital gains are determined. The Govt publishes a index table for each tax year. So an older asset would get a bump up in basis.
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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        #4
        Dealing with COLA adjustments

        Originally posted by Jiggers View Post
        Who is going to determine the adjustment for inflation?

        The client?

        Us preparers?
        My guess is it would be via a "table" (not unlike the allowable deduction for long-term care premiums due to age) and the tax software could handle things.
        I don't really see much of a problem with the "adjustment."
        What would be nice would be creating a change in the maximum capital gains loss carryforward. I think it's been $3k since somewhere around the end of the last Ice Age!

        FE
        Last edited by FEDUKE404; 07-31-2018, 10:16 AM.

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          #5
          They all say what people what to hear

          In general, I pay very little attention to rhetoric like "simplification, postcard, free, keep your health insurance".

          If something passes, we'll have instructions and do our jobs correctly. Nothing about taxes is simple. That's why clients need us. And we need them.

          Atsman is correct; this is not a new idea. Here are articles from 2013 and 1983:

          https://taxfoundation.org/inflation-...capital-gains/

          http://www.nber.org/chapters/c11332.pdf
          If you loan someone $20 and never see them again, it was probably worth it.

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            #6
            Agree

            Originally posted by FEDUKE404 View Post
            My guess is it would be via a "table" (not unlike the allowable deduction for long-term care premiums due to age) and the tax software could handle things.
            I don't really see much of a problem with the "adjustment."
            What would be nice would be creating a change in the maximum capital gains loss carryforward. I think it's been $3k since somewhere around the end of the last Ice Age!

            FE
            Yes! Agree with you completely.
            If you loan someone $20 and never see them again, it was probably worth it.

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              #7
              I believe Pres. Bush tried to get this change and failed! It would be nice if the limits such as $3000 CG loss deduction against ordinary income and other limits like AOC, Student Loan etc. are also indexed. One way Pres. Trump can make it palatable for Dems is to also index the other limits that middle class taxpayers bump up against and get a whole package of tax cuts done just before 2020. I think it may help him win reelection!
              Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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                #8
                Originally posted by ATSMAN View Post
                I believe Pres. Bush tried to get this change and failed! It would be nice if the limits such as $3000 CG loss deduction against ordinary income and other limits like AOC, Student Loan etc. are also indexed. One way Pres. Trump can make it palatable for Dems is to also index the other limits that middle class taxpayers bump up against and get a whole package of tax cuts done just before 2020. I think it may help him win reelection!
                Excuse me - but I thought that the introduction of controversial remarks on political views was prohibited on this board? Nothing wrong with expressing opinions on how tax legislation will effect the U.S. as a whole or the administration of taxation - but there's a difference when expressing thoughts on outcomes that will effect the election process.
                Uncle Sam, CPA, EA. ARA, NTPI Fellow

                Comment


                  #9
                  [QUOTE=ATSMAN;192416] It would be nice if the limits such as $3000 CG loss deduction against ordinary income and other limits like AOC, Student Loan etc. are also indexed. QUOTE]

                  LOL! Indiana personal exemption of 1,000 has never been indexed and remains the same amount as when it was first implemented in 1963!

                  Comment


                    #10
                    Originally posted by Uncle Sam View Post
                    Excuse me - but I thought that the introduction of controversial remarks on political views was prohibited on this board? Nothing wrong with expressing opinions on how tax legislation will effect the U.S. as a whole or the administration of taxation - but there's a difference when expressing thoughts on outcomes that will effect the election process.
                    Sorry Uncle Sam. It was not meant to be political commentary. It was just a logical thought of how people react to tax cuts! If the Pres. was a Dem, I would have said the same thing. BTW I am Independent.
                    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

                    Comment


                      #11
                      Partisan Politics

                      Originally posted by Uncle Sam View Post
                      Excuse me - but I thought that the introduction of controversial remarks on political views was prohibited on this board?.
                      It can be a fine line between a discussion about congress and tax legislation versus expressing a preference of partisan viewpoint. If we deal with reality, it is impossible to ignore the shenanigans of our elected officials. Some of their tactics are so blatant that if we keep up with them, our intelligence would be insulted. Such congressionally-borne terms such as "postcard"... get real.

                      Perhaps if we are looking for an "acid test", it would clearly be if we wandered into expressing favor of one political party over another. That can cause a board such as this one to rapidly degenerate into name-calling and extensive two-sided political discussion. There are blogs for this - too many to mention.

                      Comment


                        #12
                        Nina Olsen, Taxpayer Advocate, recently submitted a report to Congress regarding the new 1040 and a survey of tax professionals' opinions. It was overwhelmingly panned as a political play, and not to the taxpayers' advantage at all. It is presumed most TP's who use it will forgo the appropriate additional schedules and cheat themselves out of rightfully legal deductions. When only 9% of tax returns are self-prepared on paper, the effect of "simplification" is minimal, and does not even exist with this proposed form. Most TP's use software and e-file. Simplification does not come about solely with changing the form; it is achieved with legislation changing the tax code.

                        Comment


                          #13
                          Originally posted by Snaggletooth View Post
                          it is impossible to ignore the shenanigans of our elected officials.
                          It is also impossible to ignore the proclivities of some of our fellow citizens who elected them, let alone their intelligence level (after all, half the population is below the median intelligence).

                          What is ironic is that ATSMAN includes the following quote at the bottom of his posts: "Taxes after all are the dues that we pay for the privileges of membership in an organized society", and then goes on to suggest that maybe Democrats only care about getting their grubby hands on a few extra dollars at the expense of the general welfare of all. The legislative record, including ever-increasing income inequality fostered by the other party, shows the opposite.

                          I'm not violating the so-called "acid test" here -- " it would clearly be if we wandered into expressing favor of one political party over another." I'm not expressing favoritism, just pointing out historical facts -- you know, real ones, not alternate ones. For all you know, I may be in favor of ever-increasing income inequality! Also interesting to note that the "political" sub-thread had been dead for over a week, when Snaggletooth decided it was important to resurrect it, maybe there wasn't enough political discussion yet for him. :-)
                          Last edited by Rapid Robert; 08-06-2018, 01:37 PM.

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