I suppose you’ve seen the e-mail about the new canine breeds (breed a Collie with a Lhasa Apso and you get a Collapso, a dog that folds up for easy transport). If not, the only one you need be aware of, at least for now, is the Newfoundland crossed with a Basset Hound. That’s right: a Newfound Asset Hound. (Come December, you might check out the Pointer crossbred with an English Setter to produce a Poinsetter, the traditional Christmas pet.)
Ralph Sierra: ‘I don’t understand your July 11 column [about the guy with the $150,000 capital loss]. On the one hand, you say he can, ‘offset $3,000 of his income each year for the next 50 years,’ but on the other you say, ‘the first $140,000 or so of gains, should he happen to realize any, will be ‘tax-free.’ I’d heard of the former provision, but not the latter.’
☞ Let’s say you have $150K loss in 2001, only $3,000 of which you can ‘use.’ You carry forward the rest to 2002. Now let’s say that in 2002 you sell something for a $100,000 gain. Do you pay tax on that gain? No! Because you still have a $147,000 loss to offset it. In that sense, the $100,000 gain is tax-free. So in 2002 you use up $100,000 of the big tax loss carryforward, plus another $3,000 to lower your taxable income . . . and you would still have a $44,000 loss to carry forward to 2003.
Thanks to Paul Lerman for this link to a Philadelphia Inquirer editorial concerning my college classmate Elliot Abrams’ appointment at the National Security Council. The essence of it: ‘It is hard to imagine someone less suited to be the council’s senior director for democracy, human rights and international operations. Manuel Noriega? Don King? The hiring of Mr. Abrams – who makes Jesse Helms seem like a milquetoast – mocks the President’s saccharine pledge of civility.’
And thanks to several of you for this affecting piece from a Minnesota Mom in Sunday’s Minneapolis Star Tribune (‘Does Jake ring a bell? Not for the Salvation Army anymore’). It follows in the wake of the Bush administration’s quiet deal to support job discrimination at the Salvation Army in return for $110,000 a month in lobbying efforts – a deal quickly backed off of once it came to light.
Quote of the Day
Many speak the truth when they say they despise riches, but they mean the riches possessed by other men.~Charles Caleb Colton
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