Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 226.07

+2.4%

2:50 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robert Rose who wrote (103144)	5/10/2000 9:16:00 AM
From: Glenn D. Rudolph	Read Replies (1) of 164684

The biggest problem is the structure of the tax code. Let's say one makes $1M in ST gains in 1999, and is taxed at 39.6% federal and 10% state (as I am here in CA), leaving 500k. Let's then say one suffers $1M in losses in Mar/Apr 2000. As there is no loss carryforward for individuals Rob, Your point here is excellent. Without getting into specific numbers, I can give a good example of this. I had a good year in the market in 1996. I had to pay ST a "large" capital gains tax in addition to any more taxes due from being self employed by April 15, 1997. I always pay sel emplyment tax on one of my store's income not the issue here. I can't recall without looking my performane in 1997 in the market but it was not exciting up or down. I lost my shirt as the saying goes shorting Amazon in 1998. Never mind the fact I paid many hundreds of thousands for gain in 1996. I could only deduct $3000.00 from my income in 1998. Same for 1999, etc. In addition I still had to pay self employment taxes on one of my stores since one is a proprietorship. Maybe I am a bit biased but I believe there is something wrong with this picture. Your approach makes perfect sense to me.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next