It is only really a postponement of taxesReader comment on: Trump's Personal Tax Angle Submitted by Lyle (United States), Nov 18, 2016 12:00 If you look at the linked abstract from the code: "(c) Basis adjustments If gain from the sale of any property is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any permitted property which is purchased by the taxpayer during the 60-day period described in subsection (a)." It shows that the gain not taxed is used to reduce the basis in the permitted property going forward. So in essence the capital gains tax is just postponed. Note that the code also says what property is allowed to office holders The term "permitted property" means any obligation of the United States or any diversified investment fund approved by regulations issued by the Office of Government Ethics. So for example total stock market index funds but not etfs would work to avoid a conflict. Note: Comments are moderated by the editor and are subject to editing. Comment on this item |
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